Quarterly report Rent


ISIN: LU0083353978

Updated: 1st quarter 2024

The year 2024 has surprised many investors so far, as it turned out differently than expected. At the beginning of the year, the general assumption was that both the European Central Bank and the Federal Reserve would quickly begin to cut interest rates. However, these expectations were quickly dashed, leading to a significant rise in yields on ten-year government bonds in the first quarter. As a result, 10-year government bonds were among the losers in the bond segment. The monetary policy of central banks, particularly the Federal Reserve, will continue to have a significant influence on the capital markets. In the corporate bond segment, high-yield bonds and Coco bonds were particularly popular with investors in the first quarter. This is due to two main factors: on the one hand, the better-than-expected economic data and, on the other, the favourable reporting season in the first quarter. In general, the labour markets remain stable, inflation figures are falling, wages are rising, and sentiment indicators are gradually improving, although they have not painted a particularly positive picture so far. Risk premiums have fallen as investors’ fears of recession have diminished.

The US stock markets reached new record highs, supported by a handful of leading tech companies. A veritable rally set in especially after Nvidia posted record profits. The current hype surrounding artificial intelligence and other automated technologies is contributing to this positive development. Gold recorded a remarkable rally over the course of the quarter, reaching new all-time highs at times. This is surprising in view of the positive economic data, as gold is normally considered a haven and a hedge in times of increased volatility. One possible explanation for this favourable performance is the change in the demand structure in recent years. Most global demand for physical gold now comes from emerging markets, possibly due to increased prosperity in countries such as India, which may have increased demand for jewellery. In addition, the uncertainty on the Chinese property and stock markets and the low interest rates may have prompted Chinese investors to invest in gold. We are cautiously optimistic for the remainder of 2024. Although the sentiment indicators are not yet particularly positive, they are showing a gradual improvement. In addition, consumers in the eurozone, for example, have more purchasing power again in real terms thanks to strong wage growth, which is outstripping inflation. These factors are likely to increase consumers’ willingness to spend and help stabilise or even drive the individual economic regions.

The LiLux Rent fund invested in many bonds in various currencies in the first quarter and has achieved a performance of 1.95 % since the beginning of the year.

Performance

Source: Bloomberg LiLux Rent
Barclays Global Aggregate Total Return
29.12.2023 Price 224.89
28.03.2024 Price 229.27

In the quarter

1.95%

Im Quartal

3.43%

Core activities  

Purchases

First day price
Current price
1 million USD 5.75% POSCO 28 17.01.28 101.877 101.305
2 million EUR 2.875% Deutsche Lufthansa 27 16.05.27 96.798 96.985
2 million USD 5.125% Hyundai Cap Serv 27 05.02.27 99.679 99.261
22 million NOK 4.99% Sparebanken Vest 29 01.03.29 99.717 100.095
22 million NOK 4.625% Norske tog 27 20.01.27 99.373 99.637
1.5 million EUR 4.125% Anglo Amer Capital 32 15.03.32 99.893 100.404
0.5 million EUR 3.125% Altria Group 31 15.06.31 93.3 93.465

Sales

First day price
Sales price
5 million CHF 0% Cembra Money BK 26 09.07.26 100.62 94.145