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DWS Invest Global Bonds IC

ISIN: LU1054333791Price by date: 18/10/2019Issue price: 99.96
 Currency: EURRedemption price: 99.96

Bernhard Falk


ManagerControl: Fund Manager Since 01/11/2017 00:00:00
Management location: Germany


Current comment

In March core rate yields moved lower. US, Germany and UK 10y (year) rallied -0.3%, -0.25% and -0.30% respectively. In addition, core rate curves continued to flatten. Australia, UK and Germany flattened the most, by 9bp (basis point), 9bp and 15bp respectively. Meanwhile credit spreads moved tighter in both EU and US HY (high yield) and IG (investment grade). The strategy maintained a long overall duration view over the length of the month, only making changes to the contribution of individual countries. The PM (portfolio management) team reduced credit risk slightly on the back of the rally in several of its cash bonds, and the broader market.

Previous comments

  • 02/2019: In February markets were driven by a risk on move. Credit spreads in the US and Europe tightened in both investment grade (IG) and high yield (HY). Core rate yields rose as a result. The strategy started the month with an overall duration contribution of +0.9y, coming from a combination of long core rates. The strategy finished the month with the same duration. The PM (portfolio management) team reduced credit risk slightly given the strong rally we saw in February. The PM team reduced periphery and ABS (asset backed securities) exposure.

    klapper
  • 01/2019: The strategy started the month with an overall duration contribution of -0.1y (year), coming from long duration in EUR and short in USD. At month end the strategy had an overall duration contribution of +0.9y, coming from a combination of long core rates. January was driven by a risk on move in the financial market, and the PM (portfolio management) team used this opportunity to make several changes to its high yield (HY) allocation. In addition the PM team added some exposure to emerging markets (EM), and modified its ABS exposure.

    klapper
  • 12/2018: The strategy started the month with an overall duration of -0.4y, coming from a long duration view in EUR while being short duration in the US. The strategy finished the month with an overall duration of -0.1y. During the month of December, the PM team made several changes to the strategy’s duration. The size of the long EUR duration and the short USD duration in the strategy were reduced. In addition the PM team closed a short in Canada rates. The PM team didn’t make any changes to its credit positions. The PM team believes the diversified selection of investment grade, high yield and emerging market corporates combined with a short average maturity offers protection against idiosyncratic risks, and is more stable in market risk off moves.

    klapper
  • 11/2018: The strategy started the month with an overall duration of 0y, closing the month with an overall duration of -0.4y. The Portfolio Management (PM) team kept a long duration view in EUR, while holding on to a short duration contribution in the US. The PM team focussed on increasing liquidity in the strategy over the month of November. The PM team reduced asset-backed security (ABS) exposure, while increasing sovereign exposure. In addition the PM team made several switches to its Emerging Market (EM) corporate and sovereign allocation, keeping overall exposure constant. Going into year end the PM team will focus more on CDS (credit default indices) indices as a source of risk, which should offer more liquidity than traditional cash bonds especially with the ECB’s (European Central Bank) Corporate Sector Purchase Programme (CSPP) coming to an end. Overall risk of the strategy came down slightly but by no significant amount.

    klapper
  • 10/2018: The strategy started the month with an overall duration of 0.1y, closing the month with an overall duration of 0y. The PM (portfolio management) team made several modifications across different sectors. First of all, the PM team decided to reduce EM (Emerging Market) risk while adding risk to US high yield. The PM team reduced allocation to several EM cash bonds, and implemented a short in CDX EM (index of Emerging Market credit default swaps), while buying short dated US high yield cash bonds. Furthermore, the PM team made several modifications to its financials allocation, by trading out of senior paper, into subordinated paper. These changes meant that the strategy’s risk increased slightly over the month.

    klapper

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