“I like flexible unconstrained bond funds and we are invested in them,” says Ausfelder. “But the problem these funds are facing is that they can’t go the other way when markets turn.”
Consequently, the German fund selector is not so sure about their proposition anymore. “Our allocation could decrease in the future and we could allocate more to alternative Ucits funds instead,”, he says. “This would be necessary to fulfill our targets in a scenario of the Fed hiking rates, and certainly in a few years time when QE also ends in Europe.”
Click here to view part one of the video interview, in which Ausfelder sums up his main reasons to buy alternative Ucits funds.