Bellevue Global Income

The fund returned -2.24% in March with a volatility of 2.3%, compared to the Bloomberg Global Aggregate (EUR-hedged) Index, which declined by -1.97%.

This month, credit contributed -1.52% and government bonds -0.72%. The escalation of the Iran conflict reignited fears of stagflation, weighing on all fixed income asset classes. Credit performed in line with broader market. Government bonds were particularly volatile with the German Bund yield finishing the month +36 bp at 3.0%.

During March, we actively repositioned the portfolio in response to the evolving risk environment. On the credit side, we reduced the allocation from 63% to a net 50%. At mid-month, we initiated an 8% short position in the iTraxx Crossover Index to hedge against a potential significant widening of credit spreads. On the government bond side, we began reducing our 33% allocation early in the month, gradually reducing it to zero before turning short, ending March with positions of -10% in Bunds and -5% in French 10-year bonds. As a result, the portfolio duration fell sharply from 4.7 years to 1.0 year. Since nearly half of total credit return is derived from the underlying government bond, protecting the portfolio requires hedging both the credit spread and the rate component. Given the continued uncertainty, we will remain active in adjusting the portfolio.

The fund currently offers a yield of 3.4% in EUR, with a duration of 1.0 year and an average credit rating of A-.


The fund currently offers a EUR yield of 3.9% with a duration of 4.7 years and an average credit rating of A.

We reviewed our scenarios on March 20, 2026 as follows:

Base scenario: Contained conflict. The conflict enters a lower-intensity phase, with attacks becoming less frequent and less severe. Oil supply disruptions ease and the global economy, which started the year in a constructive position, absorbs the shock relatively well. Inflation rises temporarily due to higher oil prices, but central banks look through it and avoid aggressive tightening. Equity markets remain range-bound and volatile. This secenario is slightly negative for credit and government bonds.

Positive scenario: Rapid de-escalation. The conflict de-escalates faster than expected, whether through the reopening of the Strait of Hormuz, a weakening of the Iranian regime, or regime change. Oil prices fall back toward pre-war levels, removing inflationary pressure before it becomes entrenched. Underlying economic resilience and structural drivers reinforce confidence. Investors adopt a «buy the dip » stance. Equity markets recover sharply. This scenario is positive for credit and slightly positive for government bonds.

Negative scenario: Oil shock. The conflict remains intense, materially disrupting oil supply and driving a sustained rise in oil prices. The resulting energy shock pushes inflation higher. Central banks face a difficult trade-off and are hesitant to act decisively. Markets begin to price in higher long-term inflation and a global economic slowdown. Equity and credit markets correct. Government bonds are pressured as the inflationary backdrop keeps upward pressure on yields.