Asset Allocation Outlook June

May was another positive month for risky investments. Equities climbed by 4% worldwide, with gains mostly being noted in industrialised nations. Spreads on credits tightened further, especially in the high yield asset classes. Yields on emerging market debt also fell. Government bonds were largely unaffected by the positive performance of risky investments. In the US, 10-year government bond yields remained more or less unchanged, while in Germany they rose by 14 basis points. Spreads on Italian and Spanish government bonds narrowed. The positive trends on the financial markets were mainly the result of the stabilisation or decrease in the number of active corona cases, but also the enormous stimuli from central banks and governments. We have increased the risk exposure in our investment policy marginally by buying high yield European credits. Our slight underweight in equities has been maintained.