Flossbach von Storch launches an aggressive fixed income fund
18 FEB, 2026
By Joanna Piwko from RankiaPro Europe
Flossbach von Storch announced today the expansion of its range of fixed income funds with the launch of Flossbach von Storch - Bond High Conviction. The German manager, known mainly for its multi-asset solutions, now also offers an aggressive fixed income fund.
Since its launch last summer, the new fund has already raised around 130 million euros (at the end of January 2026). The fixed income team in Cologne has been developing and expanding successively in recent years.
Investment philosophy of the new fund
Flossbach von Storch - Bond High Conviction is the firm's strategy most oriented towards growth in this class of assets. Compared to other funds, the portfolio managers enjoy greater freedom when investing, for example, with regard to ratings, product categories, duration or exchange risks.
The fund is mainly aimed at professional and institutional investors and family offices in Germany, Switzerland, Luxembourg, Liechtenstein, Belgium, Italy and Spain. The fund is offered in different share classes in euros, Swiss francs and US dollars.
Like other fixed income strategies of Flossbach von Storch that have been successful for many years, the factors that most drive the value of the new fund are active management of duration, its structure and concentration of credit risk, as well as active selection of securities. However, investment ideas are implemented in a more focused way, with a wider range of investment opportunities. This should offer a higher return potential than traditional interest rate products. Market opportunities can be implemented very quickly in the new fund.
Unlike many other aggressive fund strategies, the fund is not limited to a single (or a few) sources of profitability and, therefore, risk, but invests flexibly in terms of diversification and avoiding risk when there are temporarily unattractive risk-opportunity profiles. Compared to many other aggressive fixed income funds, it is not just about generating profitability potential through an allocation to corporate bonds, high yield and emerging markets (which at this time do not always present an attractive valuation, in the opinion of portfolio managers). For example, currently, the fund clearly bets on duration and duration structure, relative value, and the incorporation of convertible bonds as sources of profitability.
In addition to the well-known investment guidelines of Flossbach von Storch, the following apply to the new fund:
- It focuses on issues with a volume greater than 300 million euros (also, up to 10% of the portfolio can be invested in issues of at least 100 million euros).
- It can be invested in bonds with ratings ranging from investment grade to high yield (minimum: CCC/Caa). Unrated issues are subjected to an internal rating analysis procedure. A maximum of 75% of the portfolio can be invested in bonds that do not have a top-tier rating.
- The fund invests worldwide, mainly in public debt, mortgage bonds and corporate bonds. Convertible bonds can represent a maximum of 33% of the portfolio, and hybrid and subordinated bonds a maximum of 49% together. The allocation to emerging market bonds is limited to 25%.
- There are no specific guidelines regarding duration.
- Risks in open currency positions amount to a maximum of 20%.
- In addition to currency risk hedging instruments, other derivatives can be used to manage interest rate and credit risks.
The Flossbach von Storch - Bond High Conviction fund gives our portfolio managers more leeway in their investment decisions. This particularly active and flexible investment strategy lays the foundation for very attractive returns in the bond market.
Christian Schlosser, executive director of Flossbach von Storch
We focus on investment ideas with great potential, in which we have more room for maneuver than before. We go on the offensive: the fund invests with an approach oriented to opportunities with a responsible risk and liquidity profile. The solvency of the issuers is evaluated by our internal analysts.
Frank Lipowski, portfolio manager at Flossbach von Storch
