DWS Concept DJE Alpha Renten Global LC
- As at:
- 124.52 EUR
- 127.01 EUR
The DWS Concept DJE Alpha Renten Global Fund had a positive performance in height of 2.25% in June. Dovish statements of most central banks and thus the prospect of interest rate cuts influenced investors positively. The global stock markets performed extremely well in June. The Euro Stoxx 50 index gained 5.89%, while the S&P 500 index rose 5.04% in euro terms. The MSCI World Index in euro increased 4.61%. As a result the equity quota including equity funds was increased significantly up to 24.36%. Derivatives were actively used for quota management. As a result of the announced tendency of interest rate cuts the weightings in the financial service sector were significantly reduced. The commodity, personal household goods and utilities sector, on the other hand, increased considerably. Parallel to the development on the equity markets spreads on corporate bonds narrowed significantly. Yields on high-yield bonds fell from 4.23% to 3.61% in Europe and from 6.62% to 5.87% in America. At the same time investors were able to enjoy rising prices for government bonds. While the yield on 10-year German government bonds fell from -0.2% to -0.33%, the yield on 10-year US Treasuries fell from 2.07% to 2.0% at the end of the month. Supranational bonds with the best ratings were purchased in Mexican Pesos. This created a small weighting of developing countries within the portfolio. The background is a possible friendly solution regarding the border dispute between the USA and Mexico and a not too strong US Dollar. Both should support the performance in Peso. In the bond portfolio Norwegian government bonds were sold and exchanged for Italian and American government bonds. The prices of 10-year Italian government bonds rose significantly despite the dispute with the EU over the size of the government deficit. As a result the yield fell from 2.56% to 2.10%. In the high-yield area a small position was sold due to a deterioration in the rating from a risk/return perspective. The average remaining term in the bond portfolio as a whole increased significantly to 4.75 years. The US dollar was fully hedged in the reporting period. The open foreign currency exposure at the end of June was 2.5%.