Investment Strategy
The Berenberg Euro Enhanced Liquidity fund invests in variable and fixed-interest bonds, primarily from European issuers with short and medium maturities and investment grade creditworthiness (rating of AAA to BBB-, based on Standard & Poor's classification). The aim of the strategy is to achieve stable and attractive returns above those of money market investments. Bonds are selected based on a quantitative investment process, which is supplemented by opportunistic, discretionary management decisions. The duration is actively and dynamically managed and ranges between 0 and 2 years.
- Euro bond fund with short duration and active management approach
- Individual securities are selected on the basis of a benchmark
- Average duration is between 0 and 2 years
- Investment segments are primarily government bonds, covered bonds as well as corporate and financial bonds
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
Weaker macroeconomic indicators, such as GDP growth in Germany (-0.1%), and more dovish tones from the ECB and the Fed have prompted the bond markets to assume further interest rate cuts by the end of the year. At the end of the month under review, almost 3 interest rate cuts were expected in the USA and 2 in the eurozone. The BOJ surprised market participants at the end of the month with an interest rate hike and a support programme, causing significant market distortions in the short term, particularly on the equity and currency markets. In a monthly comparison, the yield on 2-year German government bonds fell by an impressive 0.41% to 2.53%. The risk premiums on European corporate bonds with investment grade (-8bp) and high yield (+3bp) ratings trended sideways, although new issue activity was very brisk until the height of the summer.
Portfolio Management
![](https://www.berenberg.de/uploads/web/Contacts/_900x1200_crop_center-center_none/Stern-Felix_3_4.jpg)
Felix Stern
Felix Stern joined the Asset Management division of Berenberg in 2000 as a fixed income portfolio manager. Currently he is heading the fixed income selection team within the Asset Management and is responsible for institutional mandates. As a senior portfolio manager he is responsible for the selection of corporate and financial bonds as well as short-term bond market investments. He is also the lead manager for several of Berenbergs institutional mutual funds. Prior to joining Berenberg, he worked several years for the Market Research department of British American Tobacco, Germany. Felix is a CCrA - Certified Credit Analyst (DVFA) and also has a German Diploma in business economics from the Fernuniversität in Hagen.