Steffan Selbach

“Because of the high volatility in the capital markets and the uncertainty concerning the debt problems in the industrialized countries we moderately decreased our equity exposure. We think that the uncertainty will abate in the coming months and that will be positive for equities looking forward. With a level of about 2.55 per cent, German 10 year Bunds reached their lowest level in May. Even if inflation expectations are still low and we expect only a moderate economic expansion, we remain underweighted and cautious because of the risk associated with a turn in the trend of decreasing interest rates and risk aversion.”