Our investment philosophy and its implementation

Holistic thinking, a sound market opinion, consistency and transparency are our guiding principles. As active and discretionary managers, we are convinced that only with a strong and well-founded capital market opinion can a better result than the benchmark be achieved in the long term. In our multi-asset strategies, we implement our market opinion decisively, also countercyclically, contrary to the market consensus and off benchmark.

Turning away from traditional approaches

Multi-asset strategies play a central role in maintaining purchasing power and real wealth creation today because, with investments such as savings books or government bonds, only one thing is certain in a low interest rate environment: the loss of purchasing power. Multi-asset strategies use different asset classes, regions and segments depending on the investor’s risk appetite and return expectations. They consider the interaction of these assets and benefit from their different behaviours. Compared to strategies invested in only one asset class, they achieve a higher diversification effect and significantly reduce the fluctuations of the portfolio.

But multi-asset strategies also have to react to the changes in market behaviour in recent years. The low interest rate environment, the liquidity glut from central
banks, the increasing importance of systematic investment strategies, the strong growth of passive investments, new and more complex products, the changed correlation properties of investments, and the desire of investors to take sustainability aspects into account require a departure from traditional approaches, such as a strong benchmark orientation or pro-cyclical behaviour. Added to this are the increasing flood and speed of information.

Berenberg has fundamentally renewed its multi-asset investment philosophy in recent years and now offers modern, promising multi-asset approaches with its
multi-asset funds and asset management strategies that explicitly take into account the changed market environment; they go far beyond the traditional approaches of a mix solely of bonds and equities or a static mix of the two. The success of our strategies, especially in the challenging last few years, has proved us right: multiasset approaches must permanently react to the challenges of the market to achieve added value for investors.

We rightfully receive many questions from our clients and interested parties about our investment philosophy, our approaches and our way of working. Below, we answer the 10 most frequent questions and thus provide detailed insights into our thinking and work.