Investment Strategy
The Berenberg EM Local Bonds fund pursues a global (ex-euro) bond strategy in local currencies that invests in both developed and emerging market bonds and actively manages the weighting of the two segments relative to each other depending on their relative attractiveness. Its primary objective is to benefit from the yield advantage of foreign currency bonds over euro investments and the appreciation of (foreign) currencies against the euro. Using a systematic investment approach, the economically strongest countries are selected, taking into account fundamental, momentum and sentiment indicators. The duration is actively managed at the country level and is generally in the short- to medium-term maturity range.
- Global investment strategy in local currency bonds (ex EUR)
- Active positioning against a market benchmark
- Average duration is between 2 and 5 years
- Investment segments are mainly (quasi) government bonds in local currency
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | DE000A1JUU12 |
|---|---|
| WKN | A1JUU1 |
| Inception date | 11.05.2012 |
| Issue price (21.11.2024) | 85.22 EUR |
| Redemption price (21.11.2024) | 82.74 EUR |
| Fund volume | 105.73 Mio. EUR |
| Share class volume | 9.78 Mio. EUR |
| Currency Fund / Share Class | EUR / EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Gesellschaft mbH |
| Custodian | BNP Paribas S.A. Niederlassung Deutschland |
| Use of income | Distributing |
| End of financial year | 31.12. |
| Registration and Distribution | DE |
| SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
| Issue surcharge | Up to 3.00% |
|---|---|
| Flat-rate fee p.a. | 1.10% |
| Total Expense Ratio (TER) p.a. | 1.07% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Asset preservation, primarily achieved through interest income, dividends and price gains | Substantial fluctuations in value and significant price losses possible |
| Stabilization of assets in negative capital market phases through professional risk management and intelligent diversification | Currency losses due to exchange rate fluctuations |
| Improvement of the risk/return profile through active management across all bond segments | Limited participation in positive performance of individual bond segments due to broad diversification and negative selection effects in individual security and fund selection |
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
Monthly performance
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 0.02 | -0.70 | 0.89 | -0.42 | 1.90 | 0.20 | 0.96 | 2.32 | -0.21 | 0.56 | 0.09 | 0.35 | 6.07 |
| 2015 | 6.37 | 0.59 | 3.32 | -2.86 | 0.02 | -2.48 | -0.58 | -4.10 | 0.18 | 3.09 | 2.94 | -3.65 | 2.30 |
| 2016 | -0.25 | 0.41 | 0.38 | 1.35 | -0.37 | 2.38 | 0.27 | 0.44 | 0.32 | 1.03 | -1.34 | 0.74 | 5.44 |
| 2017 | 0.16 | 2.65 | 0.28 | -0.81 | -1.09 | -0.46 | -0.87 | 0.50 | -0.44 | 0.42 | -1.53 | 0.47 | -0.78 |
| 2018 | -1.27 | 0.19 | -0.68 | -0.03 | 1.47 | -2.25 | 0.32 | -2.46 | 1.13 | 1.61 | 1.97 | -0.16 | -0.29 |
| 2019 | 2.98 | 0.24 | 0.67 | -0.14 | 0.49 | 1.96 | 2.34 | -0.27 | 1.61 | -0.74 | 0.65 | 0.58 | 10.82 |
| 2020 | 0.38 | -1.51 | -5.12 | 3.54 | 1.32 | 0.73 | -2.35 | -0.96 | 0.52 | 0.63 | 2.09 | -0.34 | -1.33 |
| 2021 | 0.01 | -1.84 | 0.29 | -0.50 | 0.02 | 1.76 | -0.64 | 1.06 | -0.92 | -0.05 | -0.57 | 0.04 | -1.38 |
| 2022 | 0.11 | -1.24 | 0.49 | -0.38 | 0.44 | -2.60 | 3.22 | -0.31 | -3.16 | -1.29 | 1.57 | -2.57 | -5.74 |
| 2023 | 1.97 | -1.40 | 1.23 | -0.94 | 2.19 | 0.49 | 0.86 | -0.78 | 0.18 | -0.74 | 1.73 | 2.31 | 7.25 |
| 2024 | -0.65 | -0.81 | 0.26 | -2.00 | 0.32 | -0.21 | 1.04 | -0.49 | 1.89 | -2.72 | - | - | -1.09 |
Source: Berenberg, Management company
The charts and tables regarding performance shown here are based on own calculations according to the method developed by the German Investment Funds Association (BVI). They illustrate past performance. Future performance can deviate both positively and negatively from these calculations. Gross performance (BVI method) takes into account all charges at fund level (e.g. management fee), net performance plus the issue surcharge. Additional charges can arise for individual investors (e.g. custody account fees, commissions and other fees). Model calculation (net): An investor wants to purchase fund units for EUR 1,000 EUR. Considering a max issue surcharge of 3.00% he has to payEUR 30.00 for the purchase. Also, fees may be charged for the administration of the safe custody account, which will lower the performance. Past performance is not a reliable indicator of future performance.
Performance after issue surcharge
| 1 year | 1.97% |
|---|---|
| 3 years | -0.61% |
| 5 years | -2.06% |
| since inception | 13.13% |
| Max. Drawdown 5 years | -10.88% |
Source: Berenberg, Management company | State: 21 Nov 2024
Risk figures
| Volatility - 1 year | 5.79% |
|---|---|
| Volatility - 3 years | 6.22% |
| Sharpe Ratio - 3 years | -0.37 |
| Maximum Drawdown - since inception | -14.14% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
In October, bond markets were driven by strong US economic data and the election probabilities of the respective candidates, Trump and Harris. Consequently, the US Dollar Index performed strongly, up by 3.2%, and 10-year US yields rose by 50 basis points. The Emerging Markets Sovereign Bond Index in local currencies recorded a loss of around 2% in EUR terms in October. The increased probabilities of a Trump victory led to outflows from EM sovereign bonds in local currencies, which in turn led to higher interest rates in most EM local currencies. Additionally, the strong US dollar negatively impacted currency performance within Emerging Markets. The Berenberg EM Local Bonds Fund recorded negative absolute and relative performance in this market environment.
Portfolio Management
