DJE - Dividende & Substanz P (EUR)
- As at:
- 418.44 EUR
- 439.36 EUR
In June the European stock market - like almost all stock markets worldwide - posted a positive result. The equity markets received a tailwind from the central banks: the ECB extended the period during which key interest rates are not expected to rise till mid-2020 and will place further bond purchases in the region if the economy in the euro zone is not going pick up. The US Federal Reserve announced its willingness to react in order to support the US economy in view of the trade conflict between the US and China. Most market participants then expected the Fed to cut key rates in three steps by the end of the year. In addition hopes of a minimal consensus in the US-China trade dispute returned as US President Trump announced a meeting with Chinese President Xi at the G20 summit in July and a follow-up to the talks interrupted in late May. In this market environment the value of the DJE - Dividende & Substanz rose 3.59%. Its benchmark index MSCI World increased 4.17% in euro terms. All sectors of the MSCI performed well in June. Over the month the fund benefited mainly from its investments in the higher-weighted financial services, chemicals, household goods and construction & materials sector. Viewing individual stocks the strongest value contributions to the overall performance came from the asset manager Blackrock (USA), investment company Blackstone (USA) and telecommunications company Veon. The selection of equities in the real estate sector had a particularly negative impact. The fund's overall performance was adversely affected above all by its positioning in the Hong Kong real estate company Great Eagle, the Berlin housing company Deutsche Wohnen as well as in the US pharmaceutical group Ely Lilly. During the reporting period the fund management reduced its investments in the banking and real estate sector. In return it expanded the commodity sector in particular gold mining stocks, chemicals and household goods. Regionally the fund management increased its exposure in Europe (mainly Germany, France and Switzerland). As a result of these adjustments the fund's equity exposure rose from 90.9% previous month to 96.1%. The cash ratio fell from 9.1% to 3.9%. At the end of the month US and Hong Kong dollar denominated assets were partially hedged.