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: 02.10.2023)
NAV: EUR 116.11 (28.09.2023)
Rolling performance (30.09.2023)
|30.09.2022 - 30.09.2023||3.46%||n.a.|
|30.09.2021 - 30.09.2022||-10.07%||n.a.|
Annualized performance (30.09.2023)
|Since Inception p.a.||-3.54%||n.a.|
Cumulative performance (30.09.2023)
Facts & Key figures
The funds’ objective is to achieve an excess return of 2-4% p.a. versus the respective 3-month money market rate over the cycle. The fund invests in bonds worldwide, with the neutral portfolio weighting longterm 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)||1.23% (29.09.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (29.09.2023, base currency EUR)
|No. of positions||52|
Benefits & 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
Financial markets were in risk-on mode underpinning the performance of credit while long term rates were under pressure. As a result, credit contributed 0.97% and government bonds -0.06% to the performance of the fund. Credit outperformed the Bloomberg global high yield EUR-hedged index driven by the emerging market and CoCo positions. Within government bonds, short term bonds contributed positively while long term government bonds suffered from the 12 bps widening in the US 10-year treasury yield to 3.96%.
The allocation to the credit portfolio declined slightly from 55% to 53%. This month, we added a new issuer, Mexican Alsea EUR 5.5% due 2027 with a yield to maturity of 6.6% and a credit rating of BB-. We switched out of richer Sappi EUR 3.125% due 2026. The former operates in the fast food sector, which offers some defensiveness in case of recession, while the latter operates in a commodity environment and is undergoing margin compression. Within government bonds, we continued to build up the strategic long term government bond allocation and increased it from 11.7% to 12.7% as yields were higher.
The portfolio currently offers a yield of 4.1% in EUR for a duration of 2.8 years and an average credit rating of A.
Scenario 1, weight 25%: Investments in IT accelerate, central banks end rate increases, inflation falls, equity investors are underweight. Economic indicators are mixed and any positive news on the economy, such as booming artificial intelligence (AI) related investments or a recovery in manufacturing PMIs, could trigger a strong equity markets rally. This is positive for credit, neutral to negative for government bonds and negative for the USD.
Scenario 2, weight 50%: The US economy drifts into a mild recession. Several mitigating factors are likely to dampen the market correction and result in a loss of 5% to 15%: liquidity is still abundant, services PMIs remain strong worldwide, the boom in AI-related investments continues and institutional equity investors are already positioned cautiously. This scenario is negative for credit and slightly positive for government bonds.
Scenario 3, weight 25%: Credit conditions in the US deteriorate, developed economies fall into a global recession. Under this scenario, inflation persists, and the Fed’s restrictive monetary policy starts to impact the economy. Equity and credit markets correct. This is positive for government bonds, the USD and potentially gold.
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