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: 23.09.2022)
NAV: EUR 113.78 (22.09.2022)
Cumulative performance (22.09.2022)
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)||1.21% (31.08.2022)|
|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 August, the fund returned -0.57% with a volatility of 2.20%. The Bloomberg Global Aggregate EUR-Hedged Index lost 2.87% and the Bloomberg Global High Yield EUR-Hedged Index 1.39%. Given market uncertainty since inception of the fund on September 30, 2021, we have been investing gradually. This month, we raised the tactical cash allocation from 44% to 48%.
August started well but the confirmation of the Fed hawkish stance at Jackson Hole caused both risk-on and risk-off assets to correct rapidly. The main contributors to the fund performance were high yield bonds -0.01% and government bonds -0.56%. The high yield bond positions outperformed the Bloomberg Global High Yield Index thanks to the emerging market exposure which contributed positively. The government bond strategy was impacted by the 54 bps widening of the US 10 year treasury yield to 3.19%.
At the beginning of the month, we raised the high yield bond allocation from 43% to 45% by adding short duration EUR bonds in solid emerging market sovereigns (Colombia, South Africa). During the month, given the increasing market uncertainty, we took profits on the July additions and brought the allocation down to 40%. We end the month split between corporates 12%, financials 10% and emerging markets 19%. On government bonds, we stand at a 12% allocation, significantly below our neutral position of 50%. With the high volatility and potential double digit inflation, we still find them unattractive.
We amended the scenarios on August 18 as follows:
Scenario 1, weight 30%: Inflation peaks and interest rate expectations stabilize. Inflation will likely peak when the main commodity prices, such as oil, copper and wheat, fall back to more sustainable levels. Also, the supply chain disruptions caused by the Chinese COVID-19 lockdowns and the war in Ukraine are gradually being resolved. The Fed can be more dovish. This is positive for equities and high yield bonds, slightly negative for government bonds.
Scenario 2, weight 40%: Economic growth remains positive but corporate profitability deteriorates as operating margins fall. Inflation is likely to peak due to falling commodity prices, but at the same time becomes more entrenched at around 5%. Even though the world economy will not enter into a recession yet, equity markets consolidate. This is neutral to slightly positive for government and high yield bonds.
Scenario 3, weight 30%: The likelihood of a recession is increasing. Corporate operating margins fall. Energy supply disruptions in Europe are very likely this winter due to the shift away from Russian oil and gas. Inflation remains elevated and central banks cannot ease monetary policy aggressively. This scenario is negative for equities and high yield bonds. Government bonds remain in a negative trend, but can offer a good hedge in case of a market correction.
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