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: 22.03.2023)
NAV: EUR 115.08 (13.03.2023)
Rolling performance (13.03.2023)
|11.03.2022 - 13.03.2023||-4.39%||n.a.|
Annualized performance (13.03.2023)
|Since Inception p.a.||-5.55%||n.a.|
Cumulative performance (13.03.2023)
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 credit with 50% each. Scenario analysis and proprietary valuation models support an experienced team of specialists to express their market views and to define the most successful top down allocation. The management team has the option to increase or decrease the government bond exposure using futures. For the selection of credit 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)||1.60% (28.02.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (28.02.2023, base currency EUR)
|No. of positions||49|
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 February, the fund returned -0.72% with a volatility of 2.3%. The Bloomberg global aggregate EUR-hedged index lost 1.82%.
Credit contributed -0.63% and government bonds -0.09% to the fund performance. Credit outperformed the Bloomberg Global High Yield EUR-hedged Index thanks to the positioning on bonds of defensive issuers and of short duration. The government bond strategy contributed marginally as it is mainly invested in German short term government bonds.
During the month, we have been repositioning our credit portfolio to improve the overall credit quality. We took profits on emerging market and financial bonds and entered into corporate hybrid bonds of investment grade issuers. In the current environment of persistent inflation and increasing recession risk, we appreciate corporate hybrids as they offer an attractive carry, low duration and the same probability of default as investment grade bonds.
The allocation to credit was slightly decreased from 53% to 51%, as the Sabadell coco was called at the end of the month and we wait for further market stress to reinvest. Concerning government bonds, we maintained our focus on the short term. Given inverted yield curves in both the US and Germany, 10 year government bonds yield less than short term government bonds. The portfolio currently offers a yield of 4.6% in EUR for a duration of 2.1 years and a rating of A-.
We reviewed our scenarios on February 27. We increased the weight of scenario 3 and decreased scenario 1 and 2:
Scenario 1, weight 35%: US leading indicators bottom out, signaling that the worst of the economic slowdown is past. Markets rally. US inflation is likely to fall from now until June 2023 due to a pronounced base effect and the impact of monetary tightening. A Fed pivot would cause equity markets to rally. This is positive for non-government bonds, neutral to negative for government bonds and negative for the USD.
Scenario 2, weight 35%: Markets have already rallied significantly, interest rate expectations are too optimistic. The latest data continues sending mixed signals about a possible recession and uncertainty remains. Markets consolidate. This is slightly positive for equities and non-government bonds and slightly negative for government bonds.
Scenario 3, weight 30%: Re-accelerating inflation, deteriorating economic conditions, global trade tensions precipitate a market correction. This scenario is less likely on the 3-6 months horizon of these projections but has a higher probability on a 12-18 months basis, in our view. These risks combined would prevent central banks from loosening monetary policy in a significant way. Under this scenario, equity markets and non-government bonds correct. Government bonds, the USD and possibly gold would provide some limited shelter.
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