Investment Strategy
Ulrich Urbahn and Dr. Konstantin Ignatov are responsible for the Berenberg Variato, a flexible multi-asset fund focused on high potential individual ideas. Long term positions in niche capital market segments are supplemented by thematic investments and tactical opportunities. Investments are made across all asset classes and regions and are deliberately benchmark-agnostic. This flexible concept is thus not tied to any predefined asset weights or asset classes. The fund’s goal is to generate sustainable and attractive returns with reduced participation in strong drawdowns while tolerating short to medium-term fluctuations in value. With multi-level risk management it targets an above-average risk/return ratio.
- Flexible-opportunistic multi-asset concept with focus on capital market niches, megatrends and tactical ideas
- The fund is not managed with regards to a market benchmark.
- Target return min. 4% p.a. after costs over a medium-term period of five years
- Dynamic und flexible allocation based on the current market environment
- The investment universe comprises individual securities, funds, ETFs and derivatives
Learn more about our Berenberg Multi Asset 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
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
March was marked by significant losses in global risk assets. The main trigger was the escalation of the conflict in the Middle East, which led to a sharp rise in oil prices. Brent crude rose by 63.3% last month – the largest monthly increase on record. Global equity markets fell sharply; the MSCI World lost 6.6% in USD (-4.3% in EUR due to the stronger US dollar). Asian emerging market equity markets came under particularly heavy pressure and recorded the largest losses. The rise in oil prices and growing stagflation concerns led the market to price out expectations of interest rate cuts. As a result, government bond yields rose significantly, particularly at the short end of the yield curves. The increased risk aversion was also reflected in the credit market: investment-grade and high-yield spreads widened in both EUR and USD, with the rise being more pronounced in the high-yield segment. The US dollar strengthened (EUR/USD –2.2%, USD index +2.4%). Gold was unable to escape the broad sell-off and fell by 11.6%, whilst energy stocks were the only sector to benefit from the sharp rise in oil prices. In this environment, the Variato managed to limit losses despite the weak market phase. This was achieved through a significant reduction in the equity allocation via sales and hedging, even before the escalation surrounding Iran began. Within the core portfolio, our gold investment was the main drag, whilst the hedging strategy and the holding in Berkshire Hathaway provided support. The equity market hedges in the overlay, as well as our tactical investments in shares of oil producers, fertiliser manufacturers and commodity traders, delivered a positive contribution to performance in this difficult environment. Overall, the Variato has maintained its positive performance since the start of the year.
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.
