DWS Concept DJE Alpha Renten Global LC
- As at:
- 125.83 EUR
- 128.35 EUR
Market participants rewarded the dovish statements of the US Federal Reserve (FED) and the European Central Bank (ECB) by pricing the prospect of interest rate cuts into the markets with purchases. However, the high expectations of investors were not met to the extent expected by the central banks. The price fireworks that started the first weeks of the month did not continue until the end of the month. Index levels thus ended at lower levels after their highs in the course of the month. The MSCI World Index in euro ended the month up 2.71%. The S&P 500 index in euros rose by 3.42%, while the Euro Stoxx 50 index closed at -0.20% and the DAX at -1.69%. Spreads on corporate bonds in Europe narrowed, while American bonds remained almost unchanged. Investment grade bond yields in Europe fell from 0.54% to 0.33%. At the same time, investors in Germany were able to enjoy rising government bond prices. While the yield on 10-year German government bonds fell from -0.33% to -0.42%, the yield on 10-year US Treasuries rose from 2.0% to 2.05% at the end of the month. The prices of 10-year Italian government bonds continued to rise, supported by deaf comments from the ECB. As a result, yields fell from 2.10% to 1.59%. The equity exposure, including equity funds and derivatives, was actively managed in this market environment. It stood at 17.00% at the end of July (18.09% in the previous month). The overweighting in the commodities sector has been reduced. On the other hand, a small overweight in the food sector has been built up. The underweights in the retail and technology sectors have been reduced. Overall, the fund was positioned somewhat more conservatively. In the bond portfolio, high-yield corporate bonds that have performed well so far - from a risk/return perspective - were sold, and in return German government bonds with longer maturities were topped up. The modified duration, based on the total fund, was 3.53% at the end of July. US dollar hedging was halved in the reporting period. The open foreign currency exposure at the end of July was 33.3%. The performance of the DWS Concept DJE Alpha Renten Global Fund was 1.13% in July.