DJE - Asia High Dividend PA (EUR)
- As at:
- 190.28 EUR
- 199.79 EUR
In July most Asian equity markets slowed down with the exception of Japan and Taiwan. Initially the resumption of talks in the trade conflict between the US and China had a positive effect on market sentiment. Finally by end of the month the talks were postponed to September with no concrete result. In China industrial production increased year-on-year and retail sales increased. On the other hand, the Caixin Purchasing Managers' Index weakened and fell 49.4 points into the contracting range. In the second quarter the Chinese economy grew 6.2% year-on-year - the weakest growth in 27 years. In this market environment the DJE - Asia High Dividend fund price fell -0.73%. Its benchmark index (MSCI Daily TR AC Far East Ex Japan) rose -0.73%. In July almost all sectors of the Asian investment region suffered losses - with the exception of the technology sector, which is not the focus of the fund as most technology companies do not pay dividends. The sectors that performed best in relative terms, i.e. with the lowest losses in local currency after technolog, were utilities (currently the overweighted investment focus of the fund) and telecommunications (currently not the investment focus of the fund, therefore underweighted). The real estate (currently overweighted sector), commodities and oil & gas sector in particular performed below average, i.e. with disproportionately high price losses (both not investment focuses of the fund, therefore roughly equally or underweighted). Overall, the sector weighting thus had a largely neutral to slightly negative effect on the fund price development compared with the benchmark index in July. At the level of individual stocks the highest performance contributions came from the investments in the Chinese hygiene group Vinda, the pharmaceutical company Sino Biopharm from Beijing and the Hong Kong conglomerate Guangdong Investment. On the other hand, positions at the Chinese jewellery and gold dealer Chow Tai Fook, the real estate portfolio holder Champion Reit and the composite materials manufacturer Kingboard Laminates - all based in Hong Kong - were disappointing. At sector level the weightings in the real estate and retail, travel & leisure and household goods sectors, among others, were slightly reduced. But positions of the industrial and insurance sector were increased. Regionally the share of Chinese stocks listed in Hong Kong was reduced. The proportion of Chinese stocks listed in the USA remained virtually unchanged, as did the proportion of Japanese stocks. Indian and South Korean stocks were slightly reduced. The ratio of Singaporean stocks was slightly increased. At the end of the month values denominated in Hong Kong dollars were partly hedged.