Multi-Asset Global 5 - Fund reporting and current market commentary by alpha beta asset management (31.01..2019)
Nevertheless, pronounced countermovements are historically not a rarity, especially if the macroeconomic data can still be described as stable and a recession on a global level is not in sight for the time being. In the coming months, therefore, the US trade dispute with China and Europe will continue to be an important factor, which in an escalation has the potential to severely affect the global economy. The fear of this was pushed into the background in January, but also by the new risk budgets of investors for 2019 for the time being.
The major indices DAX, STOXX 600 Europe and S & P 500 were able to revise part of their losses from previous months, gaining 5.8%, 6.7% and 8.8% respectively. The picture was similar in the emerging markets, where the broad MSCI Emerging Markets and FTSE Vietnam gained 9.1% and 3.4%, respectively. One exception was the Indian stock market, which had little catching-up potential due to a stable fourth quarter of 2018 and thus closed the month almost unchanged.
By contrast, the pronounced stock market rally in January did not have a negative impact on government bonds; on the contrary, investors also benefited from higher prices. Overall, returns within the 10-year maturity segment from Germany, Italy and Portugal fell by 0.09%, 0.15% and 0.1% to 0.15%, 2.59% and 1.62% respectively.
Corporate and Emerging Markets bonds were similarly positive: The winners in our investment universe were US high-yield bonds and emerging market local currency bonds, which gained 3.8% and 4.4% on a total return basis. Overall, the fund was thus able to achieve a value increase of 0.47% in the first month of the new year.
For the coming weeks, however, we remain defensively positioned on the equity side. The rule-based allocation mechanism also points to a high degree of stability in the yield / risk profiles of individual investment segments, especially in the bond sector. Nevertheless, despite the stock market rally, the focus remains on risk management, as the coming weeks will be shaped by the political events already mentioned.
The current factsheets of the institutional and private share class as of 31 January 2019 can be found at: