Investment Strategy
The Berenberg Sustainable Euro Bonds fund invests primarily in EUR-denominated bonds that create environmental and social added value. To participate in the development of the euro bond market, the fund manager identifies attractive issuers and bonds that make an active contribution to solving global challenges such as climate change, water scarcity or demographic change. The fund invests in various bond segments (i.e. corporate and financial bonds, quasi-sovereign bonds and covered bonds) with good credit ratings (investment grade). Interest rate and credit risks are actively and flexibly managed at the portfolio level to increase return expectations and reduce risks.
- Diversified and flexible EUR bond portfolio
- Active positioning against a market benchmark
- Average duration is between 5 and 7 years
- Investment segments are primarily (quasi) government bonds as well as corporate and financial bonds
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | LU2230527546 |
|---|---|
| WKN | A2QCSL |
| Inception date | 15.10.2020 |
| Issue price (27.06.2024) | 90.74 EUR |
| Redemption price (27.06.2024) | 88.10 EUR |
| Fund volume | 13.51 Mio. EUR |
| Share class volume | 8.74 Mio. EUR |
| Currency | EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Luxembourg S.A. |
| Custodian | BNP Paribas S.A. Niederlassung Deutschland |
| Use of income | Distributing |
| End of financial year | 31.12. |
| Registration and Distribution | DE, LU |
| SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 9 |
Costs
| Issue surcharge | Up to 3.00% |
|---|---|
| Flat-rate fee p.a. | 1.00% |
| Total Expense Ratio (TER) p.a. | 1.14% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Participation in the development of the EUR bond market | The fund is subject to general market risk |
| Achievement of a positive impact for the environment and society | Increased price fluctuations and risk of loss or default possible when investing in emerging markets |
| Stabilization of assets in negative capital market phases through professional risk controlling and intelligent diversification | Increased price fluctuations and default risks possible with high-yield investments and investments with increased credit risks |
| Improvement of the risk/return profile through active management across all bond segments |
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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | - | - | - | - | - | - | - | - | - | -0.11 | 0.88 | 0.16 | 0.93 |
| 2021 | -0.19 | -0.84 | 0.08 | -0.12 | -0.17 | 0.18 | 0.85 | -0.28 | -0.62 | -0.84 | 0.16 | -0.30 | -2.08 |
| 2022 | -1.24 | -2.39 | -1.98 | -2.76 | -1.38 | -3.08 | 3.42 | -4.22 | -3.80 | -0.47 | 2.53 | -1.97 | -16.28 |
| 2023 | 1.96 | -1.59 | 1.08 | 0.26 | 0.10 | -0.31 | 0.84 | 0.18 | -1.17 | 0.14 | 2.56 | 2.75 | 6.90 |
| 2024 | 0.10 | -0.75 | 1.22 | -0.69 | 0.28 | - | - | - | - | - | - | - | 0.85 |
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 | 6.15% |
|---|---|
| 3 years | -10.51% |
| since inception | -10.79% |
Source: Berenberg, Management company | State: 27 Jun 2024
Risk figures
| Volatility - 1 year | 3.51% |
|---|---|
| Volatility - 3 years | 4.54% |
| Sharpe Ratio - 3 years | -1.13 |
| Maximum Drawdown - since inception | -19.51% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
The yield on 5-year German government bonds rose by 9 basis points (bp) to 2.70% in the month under review, reaching a new high for the year. In the meantime, however, the yield had fallen to 2.45% as weaker macro data from Europe and the USA initially dominated market activity. However, concerns about stubborn inflation figures led to expectations of interest rate cuts being priced out. Yields rose accordingly across the board. The assessment that the ECB will make its first interest rate cut at the beginning of June remained unchanged. Further interest rate cuts will primarily depend on the central bank's inflation and growth projections. The risk premiums on corporate bonds widened by 3 bp, while the premiums on financial bonds narrowed by 4 bp and high-yield bonds by 22 bp.
Portfolio Management
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.
Consideration of ESG Elements
Identifying companies and business models that will be successful in the long term is the basis for good investment decisions. Environmental, Social and Governance (ESG) factors are key factors in decision making and are therefore integral
components of the investment process.
ESG Score
The data provider MSCI ESG uses an ESG score of 0 to 10 to assess the management of material ESG risks of portfolio holdings compared to competitors.
ESG Controversies Screen
Investments in the fund are monitored for ESG controversies and, with the help of MSCI ESG data, flagged according their severity. Thereby, potential ESG risks of investments are identified. In the case of an orange flag (severe controversy), we enter into an active exchange with the company. In the case of a red flag (very severe controversy), the company is excluded.
