DJE - Renten Global I (EUR) Header Image
Minimum investment: 75,000 EUR
ISIN:
LU0159550580
As at:
15/07/2020
Bid:
187.16 EUR
Offer:
187.16 EUR

Monthly Commentary

The stock markets made good progress in June. The good performance was mainly due to the recovery of key leading indicators. The stock markets also received support from the central banks. The ECB increased the volume of its bond purchase program by EUR 600 billion to EUR 1,350 billion and the US Federal Reserve signaled that it would leave key interest rates at 0% until at least 2022. On the other hand, "hard" economic data (such as new orders, industrial production and exports) fell sharply in Europe or rose only moderately in the US and China. The Corona pandemic also weighed on investor sentiment as new infections increased again, especially in the USA. The bond markets largely moved sideways in June. The yield on 10-year German government bonds fell slightly from -0.40% to -0.45%, while their US counterparts remained almost stable at 0.66% after an interim increase. At -0.45%, the yield on 10-year German government bonds was 5 basis points lower than previous month. The yield on their Italian counterparts narrowed by 23 basis points to 1.26%. The yield on the corresponding US treasuries, on the other hand, remained almost stable at 0.66% after a temporary increase. Despite the impact of the corona crisis corporate paper performed well on both sides of the Atlantic in June: yields on high-quality corporate bonds in Europe narrowed by 25 basis points to 0.89% and the corresponding yields in the USA fell by 24 basis points to 2.15%. Yields for high yield corporate bonds in Europe fell significantly by 96 basis points to 5.38%, while their US counterparts remained stable at 6.87%. In this market environment the DJE - Renten Global declined slightly -0.17%. 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) rose slightly 0.31%. In June the fund benefited mainly from the recovery in corporate bonds - both investment grade and high yield - and the sharp fall in yields on high-quality Italian government bonds. The slightly negative performance is due to the foreign currency exposure that was only partially hedged in June. The fund management increased the share of corporate bonds in the still stronger new issue market and a heavily overbought secondary market: During the month it subscribed to selected corporate bonds with medium terms and attractive interest rates compared to the corporate securities currently traded on the bond market (secondary market). The fund's bond allocation fell to 80.96% from 82.98% i previous month. The proportion of public-sector paper fell slightly from 50.57% to 49.14%. The modified duration fell from 3.50% to 2.46%. At the end of the month US treasuries were hedged against price losses due to the current higher risk appetite of investors.

Legal Information / Disclaimer:

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.