Also last year showed a positive result with a plus of 3,02%. Especially income strategies were facing a challenging environment with such low interest rates. It’s a real challenge to achieve positive returns with low risk. That’s why we are happy about these positive results after fees.
Volatility in May 2019 especially in High Yield bonds led to a correction. All in all we could show positive returns for the whole year and a continuous uptrend.
Our Sharpe Ratio of 1,13 for the year and 1,58 for 6 months shows that we achieved clear outperformance against so called risk free rates.
Volatility of 3,21 % shows the level, at how low risk, this strategy is managed. Our EUR share classes suffered from the hedging costs while interest differential EUR/USD – especially during the first half of the year – widened and therefore lifted the price of hedging. The currency hedging reduces the risk but also the performance.
During November we changed the investment allocation away from Treasury Bonds more to High Yield and High Dividend ETF’s. Our indicators are still positive. So we stay fully invested for the start of the new year.