DJE - Short Term Bond I (EUR)

DJE - Short Term Bond I (EUR) Header Image
Minimum investment: 75,000 EUR
As at:
146.71 EUR
146.71 EUR

Monthly Commentary

After a three-month period of weakness prices for government bonds in Europe and the USA rose significantly. This was mainly due to the outbreak of the corona virus, which took the wind out of the equity markets' sails and unsettled market participants because of its novelty and rapid spread. Their risk appetite declined accordingly. Government bonds were in demand and posted price gains. As a result, yields on high-quality two-year government bonds in the USA and the euro zone narrowed. In Germany the yield on two-year German government bonds fell 7 basis points to -0.67% while the yield on their Italian counterparts dropped 15 basis points to -0.21%. The corresponding yield in the USA fell 26 basis points to 1.31%. Good quality corporate bonds also posted gains. In Europe high quality corporate bond yields fell 17 basis points to 0.34% but on the other side of the Atlantic they fell 26 basis points to 2.58%. Anyway high-yield bonds did not perform well. In Europe yields on high-yield European bonds fell only moderately by 4 basis points to 3.15% at the end of the month. But in the USA yields on their counterparts widened 33 basis points to 5.52%. In this market environment the value of the DJE - Short Term Bond rose 0.36%. In January the fund's performance benefited above all from the narrowing of spreads on government bonds and the stronger US dollar. On the other hand, the rise in risk premiums on high-yield US corporate bonds burdened the performance of the fund. During the month the fund's management added Mexican corporate bonds and sold Australian corporate bonds. The fund's bond allocation increased slightly to 81.93% (79.61% previous month). The average duration was significantly increased to 2.38% (0.17% previous month) bythe termination of the hedging of US and Italian government bonds. At the end of the month Australian dollar-denominated bonds were 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 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.