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
In August, global equities were primarily driven by interest rate markets. In the first half of the month, equity markets posted strong gains, buoyed by falling interest rate expectations on the back of weaker labor market data and a lower inflation rate. In the second half of the month, alongside rising energy prices, the narrative shifted: yields on 30-year US Treasuries rose above the 5.3% mark for the first time since 2007, and Scott Bessent felt compelled to curb the yield increase at the long end of the curve by announcing increased buybacks. Equity markets proved remarkably resilient during this period. Not least, the elevated yields also reflect strong nominal economic growth, which was further mirrored in a robust Q2 earnings season. The S&P 500 finished the month up 3%, while the Euro Stoxx 50 gained 2%. The 20-day realized volatility for both indices stood below 10% at month-end. Particularly noteworthy, however, was the dynamic between volatility and price performance: on positive days, the S&P 500 realized more than twice as much volatility as on negative days, and the 1-month VIX beta ranked in just the 4th percentile since records began. In an environment of rising equity prices and falling volatility, the Berenberg Guardian recorded slight losses of 0.3%. However, favorable volatility levels allowed the strategy to significantly scale up its hedges over the course of the month, leaving the Berenberg Guardian well-positioned for September—a seasonally particularly weak month.
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 Portfolio Management Liquid Alternatives & Solutions as well as the Multi Asset Strategy & Research departments. In addition, he is a voting member of the Investment Committee and is responsible for capital markets communication.
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.