Investment Strategy
The Berenberg EM Bonds ESG fund invests in emerging markets government and corporate bonds, using a systematic and active investment process. It aims to achieve an appropriate and steady increase in value while applying ESG investment criteria. In addition, it adheres to strict guidelines for the exclusion of non-ESG-compliant investments. Wide-ranging sustainability aspects are also analysed and taken into account when selecting individual bonds for the portfolio. The final portfolio is also subject to ongoing risk management at country and company level.
- Active investment approach in EM government and corporate bonds with continuous consideration of ESG exclusion and inclusion criteria.
- Active positioning against a market benchmark
- Average duration is between 5 and 7 years
- Investment segments are primarily government and corporate bonds in hard currencies
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
ISIN | LU1725429309 |
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WKN | A2H8YS |
Inception date | 03.04.2018 |
Issue price (29.08.2024) | 84.99 EUR |
Redemption price (29.08.2024) | 80.94 EUR |
Fund volume | 39.36 Mio. EUR |
Share class volume | 4.66 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, AT, CH, LU |
SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
Issue surcharge | Up to 3.00% |
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Flat-rate fee p.a. | 1.30% |
Total Expense Ratio (TER) p.a. | 1.40% |
Performance fee | none |
Chances and risks
Chances | Risks |
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Positive return potential and current income from coupon collection | The fund is subject to general market risk |
Attractive growth prospects in emerging markets | Increased price fluctuations and risk of loss or default possible when investing in emerging markets |
Possible additional income through security analysis and active management | Increased price fluctuations and default risks possible with high-yield investments and investments with increased credit risks |
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 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2018 | - | - | - | -1.31 | -0.68 | -0.68 | 1.09 | -0.91 | -0.02 | -1.57 | -0.16 | 0.78 | -3.44 |
2019 | 2.32 | 0.44 | 1.16 | -0.01 | 0.47 | 2.11 | 0.45 | 0.93 | -0.94 | -0.24 | -0.40 | 0.51 | 6.96 |
2020 | 1.12 | 0.32 | -8.39 | 0.95 | 3.53 | 1.44 | 2.79 | -0.15 | -0.54 | 0.10 | 1.59 | 1.04 | 3.34 |
2021 | -0.97 | -1.87 | -1.21 | 1.46 | 0.40 | -0.04 | -0.09 | 0.03 | -2.23 | -0.55 | -0.80 | 0.68 | -5.14 |
2022 | -2.01 | -1.78 | -1.03 | -3.91 | 0.10 | -4.77 | 1.86 | -2.03 | -4.59 | 0.12 | 4.73 | -0.45 | -13.29 |
2023 | 2.09 | -2.34 | 0.85 | 0.47 | -0.77 | 0.88 | 1.34 | -1.20 | -2.44 | -1.28 | 3.96 | 3.81 | 5.23 |
2024 | -0.72 | -0.19 | 1.02 | -1.52 | 0.95 | 0.44 | 1.74 | 1.81 | - | - | - | - | 3.54 |
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 | 7.73% |
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3 years | -8.15% |
5 years | -8.25% |
since inception | -4.35% |
Max. Drawdown 5 years | -22.86% |
Source: Berenberg, Management company | State: 29 Aug 2024
Risk figures
Volatility - 1 year | 4.84% |
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Volatility - 3 years | 5.34% |
Sharpe Ratio - 3 years | -0.85 |
Maximum Drawdown - since inception | -22.86% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
July was a month of two halves. Initially, weaker US labor market and inflation data led to an optimistic sentiment, boosting hopes for rate cuts starting in September. In the second half, the expected summer lull set in, accompanied by weak sentiment due to the US earnings season and falling commodity prices. Over the course of the month, 2-year and 10-year US yields declined by 50 and 37 basis points (Bps), respectively. Spreads on EM sovereign and corporate bonds widened by 10 and 13 Bps, respectively. The Berenberg EM Bonds ESG Fonds delivered strong absolute and relative performance, primarily thanks to its duration strategy. The fund management increased both the duration and sensitivity to interest rates before.
Portfolio Management
![](https://www.berenberg.de/uploads/web/Contacts/_900x1200_crop_center-center_none/Sung_Wei_Lon.jpg)
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.
CO₂-Intensity
The fund does not actively manage its carbon footprint, however, emissions data such as CO2 intensity are relevant parameters which can be used to assess the efficient management of a company and the extent of transition risks.
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.