Raiffeisen-Euro-Rent (R)

Fund Management Report

The decline in yields on euro government bonds continued without interruption last month. For the first time, yields on 30-year German Bunds also slipped below the zero mark. Credit spreads widened as risk aversion increased. The fund posted a gain even in these volatile conditions. The weak performance of Italian government bonds was used to increase exposure in Italy. The fund’s corporate bonds could not quite keep up with comparable government bonds. We maintain the portfolio’s current orientation for the time being. Trade topics and monetary policy measure will likely be the dominant factors on the bond markets in the weeks ahead. (23.08.2019)