DJE Lux - DJE Multi Flex
- As at:
- 164.79 EUR
- 174.68 EUR
Monthly comment of the Management Company
In October the international stock markets performed mainly well. The markets were driven above all by expectations of a provisional settlement in the trade conflict between the USA and China although the important issues of subsidies and Chinese state-owned companies were left out. In Europe the British government and the EU surprisingly agreed on a Brexit agreement which also had a positive effect on the mood on the stock markets. Expectations of a further interest rate cut by the US Federal Reserve (Fed) also boosted the equity markets. At the end of October the Fed cut key interest rates by 25 basis points to between 1.50% and 1.75%. Therefore the US dollar depreciated by just under 2% against the euro and the gold price rose from USD 1,474 to USD 1,510 per troy ounce. On the other hand, the majority of economic indicators in the USA, the euro zone and China declined. The consolidation phase on the bond markets continued in October. Yields on high-quality 10-year government bonds rose slightly in the euro zone and the USA. In this market evironment the value of the DJE Lux - DJE Multi Flex rose 0.48% in October. Its benchmark index MSCI World rose 0.22% in euro terms. The best performance contributors during the month were the gold mining ETF and an actively managed Japanese target fund, followed by a healthcare fund. The share of the portfolio investing in Asia also developed favorably. On the other hand, the ETF investing in infrastructure declined in this market environment. In addition, the consumer goods sector and the food & beverages segment had a negative impact. During the month, the fund management increased the existing gold mining ETF and the position in the S&P 500 ETF. From a tactical point of view both a passively investing Japan fund and a fund investing in the broad European equity market were newly acquired. In return the target fund investing in agricultural and food stocks was reduced. An ETF on the Swiss equity market was sold in its entirety with profit taking. The investment ratio rose from 85.36% previous month to 91.42%. The share of certificates remained stable at 7.33% (previous month 7.33%). The cash ratio fell from 7.31% to 1.25%. At the end of October futures contracts were not part of the portfolio.