DJE - Renten Global XP (EUR)

DJE - Renten Global XP (EUR) Header Image
Minimum investment: 3,000,000 EUR
ISIN:
LU0229080659
As at:
12/11/2019
Bid:
149.24 EUR
Offer:
149.24 EUR

Monthly Commentary

The international stock markets made progress in September and were able to gain ground for the most part. Monetary policy played a major role in this. The European Central Bank resumed its EUR 20 billion monthly bond purchase program and lowered its deposit interest rate from -0.4% to -0.5%. After the end of July, the US Federal Reserve again lowered its key interest rate by 25 basis points to between 1.75% and 2.0%, and in China the central bank reduced its minimum reserve rate for banks for the third time. In addition, market participants hoped that the trade conflict between the US and China could possibly lead to a provisional deal, as both sides described the resumed talks as constructive. However, the majority of economic indicators disappointed. Bond markets, on the other hand, came under pressure in September. The yield on ten-year German government bonds rose by 13 basis points to -0.57%, and the yield on ten-year US Treasuries climbed from 1.50% to 1.67%. The situation was different in Italy, where Prime Minister Conte surprisingly quickly formed a new coalition of Social Democrats (PD) and the five-star movement. The yield on 10-year Italian government bonds fell in the reporting period from 0.99% to 0.83% - from 1.8% at the beginning of August to the end of September this corresponds to a narrowing of almost 100 basis points. Yields on high-quality European corporate bonds widened in September, in line with developments in public sector bonds. Yields on high-quality European corporate bonds rose by 15 basis points to 0.40%. The yields of their US counterparts increased by 9 basis points to 2.91%. In Europe, the yield on high-yield securities narrowed by one basis point to 3.46% at the end of the month, while in the US it fell by 8 basis points to 5.65%. Against this backdrop, the DJE - Renten Global rose by 0.27%. 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 by -0.56%. The fund benefited particularly from the sharp fall in yields on Italian government bonds and the narrowing yields on high-yield corporate bonds. In addition, the appreciation of the dollar boosted the performance of bonds denominated in US dollars. On the other hand, the expansion of government and high-quality corporate bonds impaired fund performance. Over the month, the fund's management sold long-term Australian government bonds. At the country level, Italy's share increased. By contrast, the shares of Australia and Germany were reduced. Overall, the fund's bond ratio fell from 95.71% to 91.85%. The modified duration fell from 4.48% to 2.97%. The pro rata currency hedging of securities denominated in US dollars was dissolved at the end of the month.

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.