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.
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)||1.20% (31.03.2022)|
|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 April, the fund lost 1.88% with a volatility of 2.01%. The Bloomberg Global Aggregate EUR-Hedged Index lost 2.93% and the Bloomberg global high yield EUR-hedged index 3.82%. Given the market uncertainty since inception of the fund on September 30th, 2021, we have been investing the portfolio gradually.
April was a difficult month for most asset classes. As a result, both high yield and government bonds contributed negatively, with -0.97% and -0.91%, respectively. The fund outperformed all major indices thanks to our tactical 38% cash allocation. On a 100% basis, the high yield bond strategy outperformed the Bloomberg Global High Yield EUR-Hedged Index, helped by our focus on European corporate and low duration bonds. Government bonds suffered from a significant sell-off. The US 10y treasury yield rose by +60 bps, on the top of last month’s +51 bps, to 2.93%.
During the month, we increased the high yield bond allocation from 34% to 38% by adding solid issuers with low duration and attractive carry. These offer a stable carry until we can invest in a higher interest rate environment. We end the month with the high yield bond strategy split between corporates 11%, financials 11% and emerging markets 16%. Given the solid credit profile of the recent additions and still highly uncertain interest rate outlook, we maintain the allocation to government bonds stable at 24%, allowing for relatively more credit risk in the fund.
Following the April 28 review, we maintained our scenarios:
Scenario 1, weight 20%: The uncertainty tied to the Russia-Ukraine conflict dissipates, ample liquidity and lack of alternatives cause equity markets to recover. Commodity prices will fall back and inflation is likely to peak in March in the world. This is positive for equities and high yield debt, and negative for government bonds and the USD.
Scenario 2, weight 50%: Tug of war between positive geopolitical news and deteriorating economic conditions translates into a period of market consolidation. On the positive side, geopolitical tensions are abating. However, the impact of economic sanctions, rising commodity prices, additional supply-chain bottlenecks and a potential China’s economic slowdown is yet to be seen in economic numbers. Equity markets consolidate with strong sector rotations. This is negative for government bonds and neutral for high yield bonds.
Scenario 3, weight 30%: Significant world economic slowdown or even recession translates into difficult equity markets. A large number of unfavorable factors are affecting the economic recovery. High commodity prices and economic sanctions will have a significant impact on world economies. Rising inflation will affect consumption and force central banks to raise interest rates. This scenario is negative for equities and high yield bonds and positive for government bonds.
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