DWS Concept DJE Responsible Invest LD
- As at:
- 206.21 EUR
- 216.52 EUR
The international stock markets made progress in September and were able to gain mainly ground. This was largely the result of monetary policy. The European Central Bank resumed its EUR 20 billion monthly bond purchase programme and lowered its deposit interest rate from -0.4% to -0.5%. After the end of July the US Federal Reserve lowered again its key interest rate 25 basis points to between 1.75% and 2.0%, and in China the Central Bank reduced its minimum reserve rate for banks for the third time. In addition market participants hoped that the trade conflict between the US and China could possibly lead to a provisional deal as both sides described the resumed talks as constructive. However, the majority of economic indicators were disappointing. For example the US ISM Manufacturing Purchasing Managers' Index fell just below the 50-point mark. Its German counterpart reached a ten-year low of 41.4 points. The bond markets on the other hand came under pressure in September. The yield on ten-year German government bonds rose 13 basis points to -0.57% and the yield on ten-year US Treasuries climbed from 1.50% to 1.67%. In this market environment the value of the DWS Concept DJE Responsible Invest rose 0.36%. In September almost all sectors of the MSCI World developed positively. Credit institutions, insurances, oil & gas and the automotive sector achieved the highest price gains. In addition the construction & materials, chemicals and utility divisions, among others, also posted price gains. The weakest results were recorded in the sectors food & beverages, healthcare and travel & leisure. On the equities side the fund's investment in financial service providers, technology and healthcare delivered a positive contribution to performance. Regionally the highest performance contributions came from German and French equities. On the bond side Italian government bonds performed particularly well. On the other hand the fund was hardly able to benefit from the positive development of the credit institutions sector due to its underweight. The utility sector also had a negative impact on the fund's result. Regionally Hong Kong stocks in particular had a negative impact on the performance. Over the course of the month the fund management largely maintained its sector weightings. Banks remained significantly underweighted, compensated by an overweight in the financial services segment. At country level, the fund management slightly reduced the proportion of US, French and Hong Kong stocks and increased German and Italian stocks slightly. Therefore the fund's equity exposure rose from 66.92% in previous month to 68.57%. The bond ratio rose from 27.82% to 30.37%. The cash ratio fell from 3.71% to 1.01%.