Bellevue Global Income (Lux)
Efficient portfolio allocation consisting of 50% government bonds and 50% high-yield bonds
Top-down allocation via proprietary screening tool, fundamental bottom-up approach for high yield bonds
Consideration of relevant ESG aspects along all steps of the investment process
Please find a more detailed description of share classes here.
The Funds’ objective is to achieve a consistent excess return of 2-4% p.a. versus the respective 3-month money market rate. The Fund invests in bonds worldwide, with the neutral portfolio weighting government bonds and high yield bonds with 50% each.
Indexed performance (as at: 20.01.2022)
NAV: USD 123.35 (19.01.2022)
Cumulative performance (19.01.2022)
Facts & Key figures
The Funds’ objective is to achieve a consistent excess return of 2-4% p.a. versus the respective 3-month money market rate. The Fund invests in bonds worldwide, with the neutral portfolio weighting government bonds and high yield bonds with 50% each. A proprietary global macro screening engine supports an experienced team of specialists to express their market views and to define the most successful top down allocation. Risk-return is managed via the government bond allocation. The management team has the option to increase or decrease the government bond exposure using futures. For the selection of high yield bonds a fundamental bottom-up approach is applied. The portfolio is mainly invested in liquid assets, the Fund offers daily liquidity. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||1.16% (31.12.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Opportunities & Risks
- Fund targets to achieve consistent excess returns versus the respective 3-month money market rate returns across the economic cycle.
- Systematic investment approach –based on proprietary models developed over the past 25 years.
- Use of leverage is possible, the net exposure is usually between 120% and 150%.
- Possibility to make short investments if the market environment offers appropriate opportunities to do so.
- UCITS V regulated total return strategy with daily liquidity.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
- The fund invests in bonds. Their issues may become insolvent.
- The investment in fixed-interest securities gives rise to interest rate risks
- Investing in emerging market bonds entails the additional risk of political and social instability.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
Review / Outlook
In December, the fund slightly declined by 0.07% with a volatility of 1.16%. In euro, the Bloomberg Global Aggregate Index lost 0.54%, and the Bloomberg Global High Yield gained 1.76%. In its first three months of existence, the fund delivered -0.81%, impacted by both high yield and government bonds strategies with -0.28% and -0.52%. Given the high market uncertainty at the inception of the fund, we have invested the portfolio partially to be able to add on opportunities.
In December, high yield bonds contributed 0.28% and government bonds -0.35%. The high yield strategy helped mitigating the negative impact of rising interest rates on government bonds. It underperformed the Bloomberg Global High Yield due to our corporate hybrid positions which were stable. The emerging market strategy outperformed thanks to the AES Andes and Cemex bonds. The AES Andes bond regained ground following the second round of Chile’s presidential elections, won by the socialist Gabriel Boric. Markets were reassured by Boric’s moderating stance ahead of the poll and the fact that he does not hold enough Congress and Senate seats to pass radical reforms. Government bonds suffered from a 7 bps and 17 bps rise in US 7y and German 10y treasury yields to 1.4% and -0.2%,.
We maintained our overall allocation at a similar level: government bonds 26% and high yield bonds 28%, split in corporates 10%, financials 10% and emerging markets 9%.
We maintained our December 2nd investment scenarios:
Scenario 1, with a weight of 25%, foresees US inflation moderating from the current 6% down to 4-5% in 2-3 months. The world economic recovery continues and supply bottlenecks ease. This scenario is positive for equities and high yield bonds and negative for long term government bonds.
In scenario 2, with a weight of 45%, US inflation stays at the 5.5-6.5% level over the next 6 months at least. US pent-up demand means that supply bottlenecks will not abate in the short term and the economy is strong. The Federal Reserve comes under increasing pressure to accelerate the tapering of QE and to start raising interest rates. This is a tough environment for both equities and bonds that are fully valued and will consolidate. In equities, value outperforms growth and gradually reverse a multi-year trend.
Scenario 3, with a weight of 30%, projects that a new COVID-19 wave causes the economy to slow down, while inflation at 6% limits the flexibility of the Federal Reserve. This scenario is negative for equities and high yield bonds and positive for government bonds. The equity correction is not as deep as in March 2020, because 1) financial liquidity remains abundant, 2) existing vaccines are likely to be somewhat effective, 3) investors and economic agents have gained experience from the first COVID-19 wave.
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less