DJE - Short Term Bond XP (EUR)

DJE - Short Term Bond XP (EUR) Header Image
Minimum investment: 3,000,000 EUR
ISIN:
LU1714355440
As at:
04/06/2020
Bid:
97.42 EUR
Offer:
97.42 EUR

Monthly Commentary

In April the further expansion of the safety nets that had already been put in place by governments and central banks in March led to a rally on the stock markets. And the bond markets also developed positively. At -0.76% two-year German government bonds yielded 7 basis points lower than in previous month and two-year US government bonds were 5 basis points higher at +0.20%. In contrast yields on their Italian counterparts widened by 26 basis points to +0.6%. While yields on high-quality government bonds declined only slightly high-yield corporate bonds made a jump in price as their yields fell sharply by 262 basis points to 6.92% in Europe and by 139 basis points to 8.05% in the USA. Yields on high quality corporate bonds also narrowed on both sides of the Atlantic - by 66 basis points in Europe to 1.19% and by 76 basis points in the US to 2.67%. In this market environment the value of the DJE - Short Term Bond rose slightly 0.90%. In April, the fund benefited above all from the positive performance of corporate bonds - both investment grade and high yield - and from slightly lower yields on high-quality government securities. On the other hand, the weaker US dollar and the widening of yields on Italian government bonds impacted the performance of the fund. During the month the fund management increased the proportion of US government bonds to hedge the portfolio. On the other hand, it sold a weak corporate bond from the real estate sector to reduce the portfolio's risk. The fund's bond allocation fell from 78.49% to 74.25%. The proportion of public sector papers rose slightly from 45.44% to 46.13%. The duration of the portfolio was reduced to 1.22% (2.18% previous month). The fund management used interest rate futures on US and Italian government bonds for active duration management. Due to the high volatility of the markets parts of the US dollar-denominated securities were temporarily hedged during 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.