DWS Concept DJE Alpha Renten Global LC
- As at:
- 121.70 EUR
- 124.14 EUR
In March the DWS Concept DJE Alpha Renten Global recorded a price increase in height of 1.01%. Its benchmark index (70% JP Morgan GBI Global unhedged ECU, 30% MSCI World) rose 2.74%. Global equity markets continued to recover in March although the upward momentum slowed down. The ECB's statement that a rate hike in the Euro-Zone was no longer expected this year supported equity markets and led to further declines in bond yields. In this market environment the Euro Stoxx 50 index rose 1.62%, while the S&P 500 rose 3.25% in euro terms. Only the German DAX index stagnated due to the weakness of the automotive sector. The MSCI World in euros improved by 2.50%. In March the fund management left the equity quota at a high level due to the still positive outlook for the equity markets. The equity ratio including investment in equity funds was 17.55% at the end of the month. In addition, equity index futures were used periodically for investment purposes. Due to the improved economic development US equities were bought while the proportion of European equities was also reduced as a result of the unsolved Brexit problem. Equities from defensive sectors such as utilities benefited from the general decline of interest rates. Parallel to developments on the stock markets, corporate bonds also continued to recover, particularly in the high-interest and subordinated segments. Yields on high-yield bonds fell from 4.14% to 3.93% in Europe and from 6.54% to 6.43% in America. Government bond yields also declined. Yields on 10-year German government bonds even fell from 0.18% to -0.07% in the negative range. Yields on 10-year US government bonds also dropped from 2.72% to 2.41%. The sharp fall in interest rates on Italian government bonds from 2.75% to 2.49% had a positive effect on the fund's performance as the focus of investment was on this segment. The fund management selectively used lower yields on US government bonds for profit taking. On the other hand investments in US corporate bonds were further increased in the high-yield segment. The modified duration increased slightly from 4.10% to 4.21% at the end of the month while the fund's bond ratio remained virtually unchanged at 75.89% (previous month 75.05%). Currency hedges in US dollars were partially liquidated in the reporting period. Overall the open foreign currency exposure increased to nearly up to 40% at the end of the month.