DWS Concept DJE Alpha Renten Global LC
- As at:
- 126.51 EUR
- 129.05 EUR
A recession in the global economy should be prevented at all costs. The major central banks around the world agree on this and are pulling in the same direction again. The US Federal Reserve lowered key interest rates and the European Central Bank reduced its deposit interest rate from -0.4% to -0.5% and announced an unlimited bond purchase program to provide the markets with additional liquidity. Even the trade conflict between the US and China eased somewhat in September. Equity markets recovered and government bond yields rose from their lows. The German stock index achieved a performance of 4.09%, the Standard % Poor's 500 of 2.51% in euro terms. The yield on 10-year German government bonds rose from -0.70% to -0.57%. In the USA, 10-year US government bonds yielded 1.66% at the end of October after 1.49% at the beginning of the month. This was also reflected in high quality corporate bonds with good credit ratings, and yields rose by 10 basis points. In this market environment, management reduced the average maturity to 2.96 years using derivatives. Long-term Australian government bonds were also reduced. The equity exposure, including derivatives, was actively managed in these slightly rising but still very volatile markets and at the end of the month, at 15.51%, was somewhat lower than in the previous month. In particular, the commodities, retail and technology sectors were reduced. The physical gold ratio remained broadly unchanged at 5.5%. Currency hedging was largely liquidated. The open foreign currency exposure was around 48%. The performance of the DWS Concept DJE Alpha Renten Global was -0.21% in the month under review.