DJE - Renten Global I (EUR) Header Image
Minimum investment: 75,000 EUR
ISIN:
LU0159550580
As at:
20/11/2019
Bid:
182.25 EUR
Offer:
182.25 EUR

Monthly Commentary

While the international stock markets largely performed well in October, the consolidation phase on the bond markets continued. The Fed lowered its key interest rates by 25 basis points as expected to a range of 1.50% to 1.75%, but also announced a pause in its cycle of interest rate cuts, as it believes that the risks to the economic outlook would diminish. As a result, yields on high-quality 10-year government bonds rose slightly in the US and the euro zone. Ten-year government bonds in Germany, France, the Netherlands and Austria, for example, yielded a uniform 15 basis points higher. However, yields in all these countries remained negative. In the USA, yields on 10-year government bonds increased by 5 basis points to 1.72%. The yield on ten-year German government bonds rose by 19 basis points to -0.38% and its Italian counterparts yielded 0.99%, up 16 basis points. As yields on high-quality 2-year US bonds fell slightly, the flattened US yield curve became somewhat steeper again. In the USA, yields on high-quality corporate bonds also fell recently by 4 basis points to 2.87%, and high-yield corporate bonds yielded 5.64%, 1 basis point lower. In Europe, on the other hand, yields on both high-quality and high-yield corporate bonds widened in October: In Europe, bonds with good credit ratings rose by an average of 6 basis points to 0.46% recently, while high-yield European bonds yielded 3.60%, 14 basis points higher at the end of the month. Against this backdrop, the value of the DJE - Renten Global fell by -0.78%. Its benchmark index (65% BofA Merrill Lynch 3-5 Year AA, 30% JPM GBI Global Unhedged in EUR and 5% REX 1 Year Performance Index) also fell by -0.57%. Fund performance suffered in the month under review primarily from widening spreads on government bonds and rising interest rates. In the course of the month, the fund management hedged long-term US government bonds against the rise in interest rates by means of interest rate futures. Overall, the fund's bond ratio fell from 91.84% to 89.43%. The modified duration fell slightly from 2.97% to 2.54%. At the end of the month, US dollar-denominated bonds were fully hedged.

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Figures subject to revision by the auditors on the reporting dates. The published information does not constitute investment advice or a recommendation, but only provides a brief summary of the key features of the fund. The current sales documents (Key Investor Information Document, prospectus, annual report and – if the annual report is older than eight months – the semi-annual report) for the respective investment funds form the sole basis for the purchase of securities. The sales documents are available at no charge at the respective fund company, the distribution company or at www.dje.de. All data and estimates are indicative and may change at any time. This information is based on our assessment of current legal and tax regulations. The data were carefully compiled, but no guarantee can be given for the accuracy of such information. All data are subject to change. The performance is calculated using the BVI (Bundesverband Investment und Asset Management e.V.) method, i.e. without taking into account the subscription fee. Individual expenses such as fees, commissions and other charges are not taken into account in the data and would have a detrimental effect on the performance if they were. The subscription fees payable reduce the invested capital as well as the performance depicted. Data on past performance are not a reliable indicator of future performance. The tax treatment depends on the individual circumstances of the investor and may be subject to change. Please see the prospectus for more detailed tax information. In connection with brokering fund units, the Dr. Jens Ehrhardt Group and its distribution partners may receive reimbursements from costs charged to the funds by the investment companies in accordance with the respective prospectuses. The units of this fund that are issued may only be sold or offered for sale in jurisdictions in which such offer or sale is permitted. Therefore the units of this fund may not be offered for sale or sold in the USA, or offered for sale or sold to or for the account of US citizens or US persons resident in the USA. This document and the information it contains may not be distributed in the USA. The distribution and publication of this document and the offer or sale of units may also be subject to restrictions in other jurisdictions.

*) © 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.