DJE - Renten Global XP (EUR)

DJE - Renten Global XP (EUR) Header Image
Minimum investment: 3,000,000 EUR
ISIN:
LU0229080659
As at:
16/01/2020
Bid:
145.85 EUR
Offer:
145.85 EUR

Monthly Commentary

The international bond markets were under pressure in December. Yields on high-quality 10-year government bonds rose from -0.36% to -0.19% in Germany and from 1.81% to 1.92% in the USA. The main reason for this was the growing risk appetite of market participants in view of the agreement between the USA and China on a "phase one" trade agreement. This essentially means that the USA will waive various announced import duties and that China will import more agricultural goods from the USA. In Europe the election victory of the British Conservatives initially provided clarity that Britain will certainly leave the EU. However, after the election victory, Prime Minister Boris Johnson announced that the trade agreement between the EU and the UK would have to be agreed as early as the end of 2020 which again raised fears of a hard Brexit among some market participants. The weakness of European bond prices in December spread to all eurozone countries, both core and peripheral. Germany (see above) and France recorded the strongest increases in yields on 10-year government bonds triggered by the price losses, with 17 basis points each - to -0.19% and 0.12% respectively. The yield on their Italian counterparts rose from 1.23% to 1.41%. The Greek bond market, where yields remained unchanged month-on-month, held up best in the euro zone. The corresponding yield in the USA moved up by 14 basis points to 1.92%. In contrast to government bonds - with the exception of Greece - the trend for corporate bonds in Europe was stable. Yields on good quality corporate bonds in Europe remained unchanged at 0.51%. But yields on high-yield European bonds narrowed by 21 basis points to 3.19% at the end of the month. On the other side of the Atlantic, high quality corporate bonds also showed a more positive trend, with yields falling by 3 basis points to 2.84%. High-yield US bonds declined by 40 basis points to 5.19%. In this market environment the DJE - Renten Global index rose 0.20%. But 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) fell -0.54%. The decline in risk premiums on high-yield corporate bonds (including subordinated bonds) had a positive impact on the fund's performance. On the other hand, the widening of spreads on long-term government bonds had a negative impact on the performance. In addition the fund's earnings continued to suffer from rising interest rates. During the month a high-yield European corporate bond was partially recalled. The fund's bond ratio remained almost stable at 93.67% (93.78% previous month). The average residual maturity was reduced to 1.57% (5.68% previous month) by increasing the hedging of US and Italian government bonds. At the end of the month US dollar-denominated bonds were fully hedged.

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.