Bellevue Global Income

In November, the Fund returned -0.54% with a volatility of 1.1%, compared to the Bloomberg Global Aggregate EUR-Hedged Index, which gained 0.05%.

This month’s contributors were credit (-0.36%) and government bonds (-0.18%). Financial markets were driven by two major themes: concerns about a potential AI bubble and expectationsregarding a possible Fed rate cut in December. Credit lagged broad credit markets because of the emerging market bonds, in particular Brazil-based Braskem bonds. In compliance with the prospectus, we will sell these bonds in December. Government bonds experienced another volatile month, with the German 10-year yield ending +5.6 bps higher at 2.69%.

We increased the credit allocation from 59% to 62%, to invest ahead of a bond redemption and benefit from recent market weakness. We added to the investment grade exposure via the European Investment Grade Credit Future, and to emerging markets bonds. The allocation to long-term government bonds remained broadly stable at 29%.

The Fund offers a EUR yield of 4.0% with a duration of 4.3 years. The average credit rating was lowered from A+ to A.

On December 15, 2025, the StarCapital Dynamic Bonds Fund will be merged into the Fund. Investors have been informed in detail in a separate shareholders notice. The objective is to offer a focused global fixed income product and to ensure cost-efficient management in the best interest of the shareholders.

We revised our scenarios on October 31, 2025, as follows:

Base scenario: The US economic locomotive. Shown by resilient data and contained inflation. Trade agreements with key partners removed a major source of uncertainty. US equities outperform on a global scale as other major economies benefit from the US growth locomotive but lack their own growth impulse. Equity markets continue to grind higher. This scenario is neutral for credit and slightly negative for government bonds.

Positive scenario: An asset melt-up. Trump’s pro-growth economic policies begin to take effect. The AI investment boom continues unabated, reinforced by additional investments linked to the trade deals. Europe, Japan, and China follow with expansive fiscal measures. Markets expect governments to pressure central banks to be accommodative. Inflation remains contained in the early phase. Markets price in a stronger global outlook, leading to another leg up in equity markets. This scenario is positive for credit and negative for government bonds.

Negative scenario: Market scare. Elevated valuations make markets vulnerable to a correction. Several factors could act as triggers: AI disappointment, rising stress in private credit, and renewed US-China trade tensions. Equity markets correct by around 20%. This scenario is negative for credit and positive for government bonds, though we apply less hedging value to long-term government bonds.