Investment Strategy
The Berenberg EM Bonds fund uses an active investment process to invest in attractive government and quasi-sovereign bonds from emerging markets that offer above-average return potential compared to traditional EUR fixed income investments. Using a combination of systematic and discretionary components in the investment process, the fund manager selects bonds from fundamentally convincing emerging markets or government-related companies for the portfolio. The investment strategy is underpinned by ongoing country risk management and active interest rate duration management. The foreign currency risk is generally hedged.
- Fundamental investment approach in government and quasi-sovereign bonds from Emerging Markets with active duration management
- Active positioning against a market benchmark
- Average duration is between 0 and 10 years
- Investment segments are primarily (quasi) government bonds in hard currencies
Learn more about our Berenberg Fixed Income 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
In October, the market was influenced by the US election probability of candidate Trump. As a result, the US Dollar Index rose by 3.2%, and 10-year US yields increased by 50 basis points. The emerging market sovereign bond segment accordingly lost around 2%. The Spreads narrowed by ca. 23 basis points at the index level, with the high-yield segment offering further narrowing potential. The investment-grade segment, however, moved sideways in terms of spreads. The Berenberg EM Bonds performed comfortably better than the benchmark over the month, due to a tactical shortening of fund duration and maintaining an overweight position in the high-yield segment.
Portfolio Management
