DJE Gold & Stabilitätsfonds (PA)
- As at:
- 123.62 CHF (net asset value)
- 129.80 CHF
In May the DJE Gold & Stabilitätsfonds rose 1.05% in Swiss franc terms and it fell by -0.47% in Euro terms due to the depreciation of the Euro against the Swiss franc. The price of gold rose 2.60% in US dollar terms to USD 1,730.27 per ounce. Calculated in Euro, the profit of the gold price was lower at 1.39% and EUR 1,560.99 per ounce due to the devaluation of the US dollar. At the beginning of May the gold price initially continued its positive trend and then rose to a seven-year high in USD terms and a new all-time high in Euro terms. However, from mid-May onwards signs of a slight economic recovery in some economies and an aid package of EUR 750 billion planned by the EU Commission put the price of gold under temporary pressure. Towards the end of the month, however, the gold price rose again, partly due to the worsening of the situation in Hong Kong and thus ended the month under review in positive territory. Other factors driving the gold price include doubts about a V-shaped economic recovery - reinforced by clouding US economic data -, ongoing speculation about negative interest rates in the US as well, the flood of cheap money, as well as rapidly rising government debt and concerns about a new trade conflict between the US and China. These conditions favored the massive inflows of over 120 tons into gold ETFs since the beginning of the month. High investor demand and strong ETF inflows more than compensated for the currently very weak demand for gold from China and India. The alternative currency gold continues to be favored by the further drop in global interest rates, the sharp increase in public debt, investor uncertainty, the investment crisis and a fall in the value of the most important currencies supported by the central banks. The global equity index MSCI World (including dividends) performed well in May rising to 3.03% in Euro terms. In May all sectors of the global equity market performed positively: Relatively speaking, the best performing sectors - i.e. with the highest price gains - were technology, construction & materials, industrials and luxury consumer goods. Overall, the fund's sector positioning in May had a positive impact on the fund's price relative to the MSCI World. On the equity side, the highest value contributions came from the positions invested into the Swiss chemicals and pharmaceutical company Lonza, the energy utilities E.ON and Uniper (Germany), Orsted (Denmark) and Fortum (Finland). On the other hand, positions in the two Hong Kong real estate companies Great Eagle and Champion REIT, the U.S. pharmaceutical and biotechnology company Gilead Sciences and the Basel-based pharmaceutical company Roche Holding had a negative impact. Over the course of the month, the fund management expanded its activities, especially in the utilities sector. By contrast, the healthcare sector was reduced. Regionally US stocks in particular were reduced and the proportion of German stocks increased. Bonds performed positively in May with +0.44% in USD terms, measured by the Barclays Global Aggregate Total Return Index. The bond ratio rose from 11.66% in April to 12.61%. The equity exposure remained almost stable at 55.27% (55.07% in April), as did the physical gold certificate at 2.68% (2.50% in April) and the cash exposure at 1.60% (1.72% in April). At the end of the month values denominated in pounds sterling and US dollars were partially hedged.