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Bond funds with equity returns
Date:
23. April 2025
In times of falling interest rates and loose monetary policy by the European Central Bank (ECB), it may seem that fixed-income securities offer little opportunity for investors to generate significant returns. However, as the Goyer & Göppel Zins-Invest alpha Universal shows, this is far from the case. Stefan Maiwald, Managing Director of Portfolioalpha Consulting, explains
in an interview with ChampionsNews how the fund has managed to deliver strong returns despite various challenges. He discusses the flexible investment strategy, the team’s decision-making model, and how they navigate current market conditions.
Stefan Maiwald: We follow a flexible and diversified investment strategy. This allows us to selectively purchase bonds from banks, insurance companies, and corporates that offer attractive returns, even in volatile markets. A key advantage of our fund is that it is not managed by a single fund advisor. Instead, we make our investment decisions together as a team with the Hamburg-based bank Goyer & Göppel. This ensures a well-informed and diverse perspective.
Compared to other funds, the Goyer & Göppel Zins-Invest alpha Universal is known for delivering exceptional returns within the broad range of bond funds. What are the main factors behind this success?
Our strategy combines deep market insight with decades of capital market experience. For example, we invest part of our portfolio in foreign currency bonds to capitalise on currency opportunities. Another part of our portfolio is invested in floating-rate bonds to protect against interest rate fluctuations. This makes our fund more flexible and resilient than many other bond funds.
What changes have you observed in the market environment in recent years, and how has the fund adapted?
The most striking change, apart from the ECB’s interest rate policy, has been the increase in market volatility. There have been periods of increased market volatility in recent years, driven by geopolitical tensions and economic uncertainties. While these fluctuations impact bond performance, they also create counter-cyclical opportunities as part of our investment approach.
How are you responding to the challenges presented by the ECB's monetary policy?
Monetary policy and the recent decline in interest rates are challenging. However, we have adopted a robust approach: focusing on corporate bonds that continue to offer attractive yields. We have also further diversified and internationalised our portfolio in recent years to benefit from opportunities across different markets. This allows us to take advantage of the best investment opportunities even during difficult times.
It is often said that investors can no longer earn strong returns from bond funds because low interest rates leave little room for profit. What’s your take on this?
That view is too short-sighted. While bonds are generally less volatile than equities, that doesn't mean they can't generate strong returns. Especially in a declining interest rate environment, corporate bonds with good yields can produce equity-like returns in a bond fund. Our fund has already proven this: in both 2023 and 2024, we achieved annual returns of over 11 per cent. This shows that bond funds are certainly capable of delivering attractive returns – if the right bonds are selected.
How do you manage liquidity outflows that may result from market changes?
Thanks to the fund’s size and our close communication with investors, we are generally able to anticipate potential outflows. In addition, we are not dependent on any single large investor. We issue a monthly newsletter that provides our investors detailed insights into the fund’s the performance and latest developments. This transparency and open dialogue with our investors allow us to respond to changes at an early stage and adjust our liquidity positions accordingly.
A summary of your investor rights can be found at www.universal-investment.com/en/Corporate/Compliance/Investor-Rights. In addition, we would like to point out that Universal Investment may, in the case of funds for which it has made arrangements as management company for the distribution of fund units in other EU member states, decide to cancel these arrangements in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU, i.e. in particular by making a blanket offer to repurchase or redeem all corresponding units held by investors in the relevant member state.
An investment in a Fund is a risky investment and investors in the Fund may suffer a loss in value up to an amount equivalent to a total loss of the entire capital invested in the Shares in the Fund. Accordingly, potential investors should have adequate and sufficient liquidity to economically bear a total loss of their investment in the Fund.
