Key information
The DJE - Short Term Bond, invests globally and draws on the various parts of global fixed income markets with a focus on short maturities and investment grade ratings. The fund primarily invests in bonds denominated in Euro. The fund invests in a selection of high-quality securities based on a thorough analysis of fundamental data in addition to broad market analysis in search for global yield opportunities. The fund is managed without any constraints on sectors, countries, credit ratings or benchmark indexes. With its global spectrum of short-dated bonds, the fund offers a balanced risk/reward profile and aims to achieve a positive performance.
Responsible manager since inception
Responsible manager since 19/07/2022 as co-manager
Key information
ISIN: | LU0159551125 |
WKN: | 164322 |
Category: | Fund EUR Diversified Bond - Short Term |
VG/KVG: | DJE Investment S.A. |
Fund Manager: | DJE Kapital AG |
Risk Category: | 2 |
This sub-fund/fund promotes ESG features in accordance with Article 8 of the Disclosure Regulation (EU Nr. 2019/2088). | |
Type of Share: | |
Financial Year: | 01.01. - 31.12. |
Launch Date: | 27/01/2003 |
Fund currency: | |
Fund Size (27/03/2024): | 313,20 Mio |
TER p.a. (29/12/2023): | 0,63 % |
Reference Index: | - |
Fees
Management Fee p.a.: | 0,430 % |
Custodian Fee p.a.: | 0,060 % |
Ratings & Awards (27/03/2024)
Morningstar*: |
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All ESG information presented here relates to the fund portfolio shown and is sourced from MSCI ESG Research, a leading provider of environmental, social and governance analysis and ratings.
MSCI ESG RATING (AAA-CCC): | A |
ESG-Qualityrating (0-10): | 6,636 |
Environment Rating (0-10): | 6,187 |
Social Rating (0-10): | 5,558 |
Governance-Rating(0-10): | 5,808 |
ESG rating in comparison group (0% lowest, 100% highest value): | 38,830 % |
Peergroup: |
Bond Global EUR
(618 Fonds) |
Coverage rate ESG rating: | 80,636 % |
Weighted average CO₂ intensity (tons of CO₂ per 1 million US dollars in sales): | 136,218 |
Portfolio allocation according to ESG rating of individual securities
Report date: 29/02/2024
- is proprietary to Morningstar and/or ist content providers may not be copied or distributed and is not warranted ob e accurate, complete or timely. Neither Morningstar nor ist content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Perfomance Chart
Performance in Percent
Risk metrics (27/03/2024) |
|
---|---|
Standard Deviation (2 years): | 2,23 % |
Tracking Error (1 years): | - |
Value at Risk (99% / 20 days): | -1,38 % |
Maximum Drawdown (1 year): | -0,78 % |
Sharpe Ratio (2 years): | -0,29 |
Correlation (1 years): | - |
Beta (1 years): | - |
Treynor Ratio (1 years): | - |
Top Country Allocation (29/02/2024) |
|
---|---|
United States | 39,58 % |
Germany | 22,02 % |
Italy | 6,79 % |
Netherlands | 6,41 % |
Finland | 3,34 % |
Asset Allocation (29/02/2024) |
|
---|---|
Bonds | 94,17 % |
Cash | 5,83 % |
Investment strategy
The focus is on bonds with short residual maturities, good liquidity and high-quality credit ratings. The strategy focuses on corporate and government bonds, mortgage bonds, profit participation certificates, zero-coupon bonds and variable-interest debt instruments. The DJE - Short Term Bond achieves a low currency risk by investing predominantly in EUR securities, whereby part of the fund assets can also be invested in foreign currency bonds. Active duration management using interest rate derivatives and management of residual maturities reduces the risk of interest rate changes. The balanced portfolio and the investment horizon geared to short maturities intends to avoid major fluctuations in the strategy and achieve a stable performance.
Chances
- Global bond fund with a focus on high-quality bonds with short maturities.
- Active interest rate, maturity and risk management.
- Moderate investment horizon offers an attractive risk-return profile.
Risks
- In the case of securities not denominated in euros, there is a currency risk for euro investors.
- Bonds are subject to price risks when interest rates rise.
- Bonds are also subject to country risks and the creditworthiness and liquidity risks of their issuers.
Monthly Commentary
In February, it became apparent on the bond markets that hopes of early interest rate cuts were exaggerated. In the USA, inflation proved to be more stubborn than expected. Economists had expected inflation to fall to 2.9% year-on-year in January, but inflation came in at 3.1% and core inflation (excluding energy and food) at 3.9%. The international stock markets posted strong gains, while robust figures were also released from the US labour market, as over 350,000 new jobs were created in February and the unemployment rate remained stable at a low 3.7%. In addition, the two purchasing managers' indices for services and manufacturing, which are leading indicators in the US, rose significantly and point to an expanding economy. In view of the positive economic data, a recession in the US should no longer be an issue in this cycle. The US Federal Reserve (Fed) wants to avoid a recession on the one hand, but on the other hand bring inflation towards its target of 2.0%. If this trend continues, key interest rates are likely to be cut later - possibly not until June - and not as often as expected. If inflation does not fall to 2.0% permanently, the Fed is likely to stop cutting interest rates again. In the eurozone, the Purchasing Managers' Index for services left the recessionary zone. However, the index for the manufacturing sector unexpectedly fell even lower in February. As a result, the eurozone economy is likely to continue to tread water in the first quarter of 2024. The rate of inflation in the eurozone rose by just 2.6% in February compared to the same month last year - in January it was 2.8%. This means that inflation is moving in the direction desired by the European Central Bank. If the inflation rate continues to approach the 2% inflation target in the coming months, the ECB is likely to cut interest rates. This would be the first interest rate cut since March 2016. For these reasons, yields on 2-year German and US government bonds rose sharply. At 4.62%, yields in the US were 41 basis points higher than in the previous month and in Germany they were 47 basis points higher at 2.90%. As a result, the yield curve became more inverted again, as the rise in yields on 10-year government bonds was lower. Yields on high-quality corporate bonds rose almost in parallel in the eurozone and the USA, by 29 and 30 basis points respectively. Only high-yield bonds moved in the opposite direction: while the yield on European high-yield bonds fell by 21 basis points to 7.29%, the yield on their US counterparts rose slightly by 7 basis points to 7.86%. Against this backdrop, the DJE - Short Term Bond fell moderately by -0.07%. The fund benefited from the narrowing risk premiums on high-quality and high-yield corporate bonds. In contrast, the broad rise in yields on most bond types weighed on the fund. Over the course of the month, the fund management acquired a USD-denominated bond from the pharmaceutical sector and increased the average maturity of the portfolio by replacing shorter-dated bonds from the travel & leisure sector with longer-dated bonds. It also reduced bonds from the utilities and construction sectors. The fund management shortened the modified duration of the portfolio (including cash and derivatives) from 2.08% to 1.99% in order to reduce the risk posed by rising yields. At the end of the month, the currency hedging of securities denominated in US dollars against the euro was largely reduced.