Monthly report October 2026

Alongside the ongoing geopolitical challenges, the bond market dominated developments on the financial markets in October. Yields on ten-year US government bonds reached their highest levels in decades at times, whilst in Europe, doubts about fiscal policy drove the yield spreads on French government bonds to levels last seen during the eurozone debt crisis. Furthermore, the surge in AI stocks was curbed after bad news about funding problems at some providers began to circulate. In general, there is growing scepticism as to whether the immense investments in this sector will ever pay off financially. To top it all off, the mood in the run-up to the upcoming US mid-term elections is also one of caution. Whilst forecasts point towards a change of power in Washington, market participants are adopting a cautious stance and taking a more defensive approach.

Our fund proved highly resilient in the face of this challenging environment, and the high quality of our portfolio ensured stability. As always, we refrain from engaging in any speculation regarding the outcome of the US election, but instead invest with a steady hand and foresight, as we always do.