DJE - Dividende & Substanz P (EUR)
- As at:
- 397.09 EUR
- 416.94 EUR
Positive monetary signals for the stock markets emerged in July. The European Central Bank announced that it would leave key interest rates at 0% or possibly lower them further, and showed itself ready for a new bond purchase program. In the US the Federal Reserve lowered key rates by 25 basis points to a range of 2.00% to 2.25% for the first time in ten years as widely expected by the markets. In addition the resumption of trade talks between the US and China had a positive impact on the market sentiment as had merger and acquisition activity on both sides of the Atlantic. On the other hand the vast majority of economic data in Europe fell short of expectations. The purchasing managers' indices for Germany and the euro zone continued to fall and reached their lowest level in six years. In Germany new orders and industrial production were well below the previous year's levels and various profit warnings from DAX groups depressed sentiment on the stock market. In addition the probability of a Brexit without an agreement increased. In this market environment the value of the DJE - Dividende & Substanz - rose 0.87%. Its benchmark index MSCI World gained 2.71% on a euro basis. In July most sectors of the MSCI performed moderately to well with the exception of commodities and oil & gas which recorded losses. Over the month the fund benefited mainly from its exposure to the overweight food & beverage and travel & leisure sectors. At the individual stock level the strongest value contributions to the overall performance came from the US foodservice company Starbucks and the French food group Danone. On the other hand the overall result was negatively impacted mainly by the slightly overweighted exposure of the commodities sector. In addition stock selection in the underweighted banking sector also had a negative impact. At the level of individual stocks the positioning with the Swiss chemical industry company Sika and the software manufacturer SAP from Walldorf had a negative impact on the overall result of the fund. Over the course of the month the fund management reduced the financial services, real estate and industrial sector. In return it increased its investments in the food & beverages, travel & leisure and technology sectors, among others. Regionally the fund management cut Europe (including Germany). But increased its exposure in the USA, Switzerland and France. As a result of the adjustments, the fund's equity exposure rose from 96.01% in previous month to 98.36%. The cash ratio fell from 3.99% to 1.64%. At the end of the month euro-denominated securities were hedged against the US dollar.