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Old 18.04.2017, 22:05
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Allianz Euro Rentenfonds

Hi

Do you have any experence with this Rentenfonds?

Allianz Euro Rentenfonds - A - EUR

Some people say I have to sale it and some say I have to keep it.

I have no idea about finance, my be some of you can help me??

Thanks,
A. D.
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Old 19.04.2017, 07:00
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Re: Allianz Euro Rentenfonds

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Hi

Do you have any experence with this Rentenfonds?

Allianz Euro Rentenfonds - A - EUR

Some people say I have to sale it and some say I have to keep it.

I have no idea about finance, my be some of you can help me??

Thanks,
A. D.
Why did you buy it? No honestly, what was the reason to go for a Rentenfonds? It is not a fund that will give you a high yield in a short period of time.

I have one but then I intend to keep that until I retire or so, so one for the long run (and to forget I have it for the time being)
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Old 19.04.2017, 07:09
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Re: Allianz Euro Rentenfonds

Well for starters, it has an obscenely high TER of 0.80%, whereas most of its peers (Europe government IG bond funds) charge only about 0.20%.

Current yield to maturity in its portofolio is 0.86% according to daily prospectus, minus the managements fees basically leaves you a zero, so it seems like all future profits are currently fully priced in and holding it further amounts mostly to a speculative bet on interest rates dropping even further.

If rates stays the same, you'll just be getting your yearly coupon from it, but its price will drop by same amount, and it'll cost you some more in taxes than if you sell now and just park the cash at 0% in a savings account. If interest rates rise, you'll definitely lose money. If they drop, it'll appreciate in price. It's a strange state of financial world we're currently living in where people are holding bonds for capital gains rather than income!

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I have no idea about finance, my be some of you can help me??
Then why the hell did you buy it in the first place? If you don't understand your investment, maybe you should indeed just sell it

Last edited by ivank; 19.04.2017 at 07:35.
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Old 21.04.2017, 12:10
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Re: Allianz Euro Rentenfonds

Thanks for the answer!

The first adviser suggested me to buy it and told me, that in a long period of time I will have a high yield. Then he went and the new adviser suggest me to sell it. He say, this is an "old" rentenfond and probably I will lose even more money...

Now: as I am not an expert I dont knoe what I have to do. Do you think in about 2 year could I have a yield? Or what do you suggest me to do?

Thanks,
A.D.
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Old 21.04.2017, 12:44
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Re: Allianz Euro Rentenfonds

Thee are government bonds, these days you can consider yourself lucky to have any yield at all. Which you don't BTW, because the management fee eats all the little of it that the underlying bonds pay. This isn't the 80s anymore where bonds were yielding double digits, rates have been falling for good quarter of a century now. Swiss bonds now actually cost you money for the privilege to hold them, as 0% interest rate isn't the floor apparently

Main reason to hold them if at all is as a safer and slightly more profitable, hopefully yielding above inflation, substitute for just holding cash in a savings account.

In a classic 60/40 portfolio, you'd keep 60% of your wealth in stocks, the rest in bonds/cash, and restore the balance periodically as the time goes. When stocks go down, bonds typically hold their value or even go up, and so rebalance amounts to buying stocks when they're low, and vice versa: when stocks go up, you're selling them when they're high. And as we all know, buy low and sell high is the key profit step.
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Old 21.04.2017, 13:16
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Re: Allianz Euro Rentenfonds

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Thee are government bonds, these days you can consider yourself lucky to have any yield at all. Which you don't BTW, because the management fee eats all the little of it that the underlying bonds pay.
Plus the EUR to CHF exchange rate dance of the last few years has probably eaten away far more than your yield.
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Old 21.04.2017, 13:21
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Re: Allianz Euro Rentenfonds

Plus don't forget taxes which you're paying on the much higher nominal interest rates, rather than actual yield to maturity

This Rentenfund is a money losing investment currently and is a bet that interest rates will fall further. If they rise, you lose money in its market value
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