Investment Strategy
Berenberg Financial Bonds is a benchmark-independent, flexible fixed income fund with an investment focus on financial bonds and a regional focus on Europe. The aim of the investment strategy is to generate both an attractive return and steady coupon income by investing across the entire capital structure. In the medium term, the aim is to develop a total return character. In order to identify attractive opportunities and market inefficiencies, the fund management utilises a broad and flexible toolbox from the entire capital structure. The focus is on fundamental analysis and single bond picking. Interest rate, credit and currency risks can be actively managed through the use of derivatives.
- Diversified and flexible financial bond portfolio focussing on European issuers
- The fund operates independently of benchmarks
- Targeted reduction of volatility and drawdowns through a maximum AT1 ratio of 30% and exclusion of CCC-rated bonds
- Wide range of instruments includes individual bonds, funds and derivatives
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | LU2116693222 |
|---|---|
| WKN | A2PZPX |
| Inception date | 15.01.2013 |
| Issue price (17.01.2025) | 119.29 EUR |
| Redemption price (17.01.2025) | 115.82 EUR |
| Fund volume | 85.49 Mio. EUR |
| Share class volume | 4.06 Mio. EUR |
| Currency Fund / Share Class | EUR / 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, CH, LU |
| 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. | 1.29% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| Attractive return potential over the medium to long term | Bonds are susceptible to fluctuations, price losses possible |
| Above-average performance by exploiting various value drivers of the bond market | Unit value may fall below the purchase price at which the client acquired the unit |
| Possible additional income through active and opportunistic management | No guarantee of success due to active and opportunistic management |
| Generation of attractive distributable income |
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 | 2.34 | -1.64 | 0.47 | -0.19 | 1.98 | -0.01 | 2.51 | 1.82 | 4.02 | 1.21 | 1.23 | 2.60 | 17.48 |
| 2015 | 8.38 | 1.54 | 3.81 | -4.38 | 2.04 | -2.84 | 2.26 | -2.48 | -1.48 | 2.99 | 4.64 | -3.95 | 10.14 |
| 2016 | 0.04 | -0.32 | -2.74 | 0.33 | 2.63 | 0.00 | 0.77 | 0.68 | -1.22 | 2.58 | 3.14 | 1.04 | 6.99 |
| 2017 | -2.27 | 2.86 | -0.88 | -1.67 | -2.64 | -1.20 | -2.77 | -0.51 | 1.41 | 2.48 | -2.11 | -0.52 | -7.73 |
| 2018 | -2.83 | 1.19 | -1.30 | 2.20 | 2.20 | -0.77 | 1.52 | 0.09 | 0.73 | 1.83 | -1.43 | -1.48 | 1.80 |
| 2019 | 1.88 | 2.08 | 1.60 | 1.75 | -0.23 | -0.19 | 3.54 | 0.47 | 1.86 | -1.33 | 2.10 | -0.37 | 13.85 |
| 2020 | 2.17 | 0.00 | -11.69 | 2.24 | 2.12 | 2.94 | 1.19 | 1.54 | 0.31 | 0.41 | 3.59 | 1.05 | 5.03 |
| 2021 | 0.61 | 0.52 | 0.43 | 1.14 | 0.09 | 0.69 | 0.32 | 0.29 | 0.25 | -0.47 | -0.29 | 0.31 | 3.93 |
| 2022 | -0.85 | -3.56 | -0.90 | -1.81 | -1.68 | -4.87 | 1.58 | -0.86 | -3.97 | -0.30 | 2.96 | -0.15 | -13.75 |
| 2023 | 2.79 | 0.23 | -2.14 | 0.71 | 0.48 | 1.03 | 1.26 | 0.15 | 0.17 | 0.04 | 2.26 | 2.56 | 9.87 |
| 2024 | 1.47 | 0.02 | 1.40 | 0.06 | 1.07 | 0.25 | 1.66 | 0.54 | 1.18 | 0.30 | 1.07 | 0.62 | 10.04 |
| 2025 | - | - | - | - | - | - | - | - | - | - | - | - | 0.08 |
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 | 9.68% |
|---|---|
| 3 years | 4.44% |
| 5 years | 11.67% |
| since inception | 65.89% |
| Max. Drawdown 5 years | -17.07% |
Source: Berenberg, Management company | State: 17 Jan 2025
Risk figures
| Volatility - 1 year | 1.56% |
|---|---|
| Volatility - 3 years | 3.07% |
| Sharpe Ratio - 3 years | -0.28 |
| Maximum Drawdown - since inception | -17.07% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
US economic data once again dominated market activity in December. In particular, the better-than-expected US labor market report caused interest rates to rise across the board. The yield on German 10-year Bunds rose by 28bp month-on-month to 2.37%. In addition, US inflation rose again slightly for both consumer and producer prices. Despite this, both the ECB and the Fed cut their key interest rates by a further 25bp. In view of the more persistent inflation, however, market participants expect the Fed to make only two interest rate cuts of 25 bp each in 2025, while four interest rate cuts are priced in for the ECB. Investmentgrade euro corporate (-6bp) and high yields bonds (-32bp) benefited from moderate spread tightening.
Portfolio Management
Christian Bettinger
Christian Bettinger, CFA, has been with the company since June 2009. As fund manager of the mutual funds Berenberg Euro Bonds and Berenberg Credit Opportunities, he is responsible for the selection of corporate bonds in the Multi Asset area. After apprenticeship as a banker and studying business administration at the Catholic University of Eichstaett-Ingolstadt, he first went through the trainee program at Berenberg. In February 2010, the business graduate was taken over early as a junior fund manager with a focus on derivatives and fixed income. Bettinger is a CFA-Charterholder, Certified Financial Engineer (CFE) and admitted Eurex trader.
Gerald Deutsch
Gerald Deutsch joined Berenberg in 2021. He started his career in the Berenberg Graduate Program with assignments in discretionary equity and fixed income portfolio management, fixed income research, as well as in institutional fund sales both in Germany and Switzerland. He exited the program early in 2022 and became a fixed income portfolio manager with a focus on corporate credit. He holds a Master of Finance from Frankfurt School of Finance & Management and a Bachelor of Psychology from the University of Kent.
